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Page 1: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given
Page 2: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given
Page 3: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

1

ELGI�EQUIPMENTS�LIMITED� ����CIN�:�L29120TZ1960PLC000351

� � �th54 ��Annual�General�Meeting� Board�of�Directors

� � � �Managing�Director�� � � �Jairam�Varadaraj

� � � Non-Executive�Directorsth�Date� :� 25 �September,�2014� �N.�Mohan�Nambiar�

Day� :�� Thursday� �����Dr.�T.�Balaji�NaiduTime���� :� 10.30�AM� �����B.�Vijayakumar� � � �����Sudarsan�Varadaraj� � � �����Dr.�Ganesh�DevarajPlace��� :�� 'Ardra'� ������M.�Ramprasad� �� No.9,�North�Huzur�Road,�(Near�Codissia�Building)� �������� �� Coimbatore�-�641�018� �������� �� � ����Chief�Financial�Officer� � � ����S.�Sriram������������ � � ����� � �

thBook�Closure�dates:��10 September,�2014��to� ���Statutory�Auditorth� �����������������������25 �September,�2014� M/s.�RJC�Associates

��� � ��������������(Both�days�inclusive)� ������Chartered�Accountants

���� � � ��

� � � ����Bankers� � � �����Central�Bank�of�India� � � �����State�Bank�of�India� � � The�Hongkong�and�Shanghai�Banking� � � �����Corporation�Limited� � � HDFC�Bank�Limited

� � � �����Registered�Office� � � �Elgi�Industrial�Complex,� � � Trichy�Road,�Singanallur� � � ���Coimbatore�-�641�005� � � Phone���:�91-422-2589555� � � ���Fax�������:�91-422-2573697� � � Website�:�www.elgi.com

� � � ��

� � � �Registrar�&�Share�� � � �Transfer�Agent� � � �Link�Intime�India�Private�Limited� � � ���Coimbatore�Branch� � � “Surya”�35�Mayflower�Avenue�������������������������������������������������������������������������������� (2nd�Floor)�Behind�Senthil�Nagar� � � Sowripalayam�Road� � � Coimbatore�-�641�028.

Contents� Page�No.

thNotice�of�the�54 �Annual�General�Meeting� 3Management�Discussion�and�Analysis� 11Directors'�Report� 13Corporate�Governance�Report� 18Auditorʼs�Report�� 29Annual�Accounts� 32Cash�Flow�Statement� 51Consolidated�Financial��Statements� 52Annual�Report�of�ATS�Elgi�Limited� 68

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(`.�In�Million)

Particulars� 2013-14� 2012-13

Net�Sales� �13,504�� �11,445�

Other�Income� �92� �162

Total�Income� �13,596� �11,608

Total�Expenditure� �

���a)��(Increase)�/�Decrease�in�Inventories� �(156)� �(167)

���b)��Consumption�of�Raw�Materials� �7,954� �6,926

���c)��Staff�Cost�-�Salaries� �

�������(Inclusive�of�Performance�Pay)� �2,328� �1,633�

���d)��Other�Expenditure� �2,384� �2,059

Interest�Expenditure� �97� �45

Depreciation�/�Amortisation� �262� �182

Total�Expenditure� �12,871� �10,677

Profit�/�(Loss)�Before�Tax� �725� �931

Provision�for�Taxation� �269� �329

Net�Profit� �456� �602

Paid�up�Equity�Share�Capital� �159� �159

Reserves�excluding�revaluation�reserves� �4,448� �4,148

Capital�Expenditure� 1,327� �2,750

Cash�flow�from�operations� 975� �(708)

Basic�EPS�(In�`)� �2.9�� �3.8�

Dividend�per�Share�(In�`)� �1�� �1�

No.�of�Shareholders� �20,981� �22,125

No.�of�Employees� �2,033� �2,057

Year�at�a�glance��-�Consolidated�Financial�Statements

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

2

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

thNotice�of�the�54 �Annual�General�Meeting

NOTICE�TO�SHAREHOLDERS

NOTICE�is�hereby�given�that�the�54th�Annual�General�Meeting�of�the�Shareholders�of��Elgi�Equipments�Limited�will�be�held�on�Thursday,� the� 25th� Day� of� September� 2014� at� 10.30� AM� at�'ARDRA',� No.9,� North� Huzur� Road� (Near� Codissia� Building),�Coimbatore�641�018��to�transact�the�following�business:

ORDINARY�BUSINESS:

1.� To�consider�the�Statement�of�Profit�and�Loss�for�the�financial�year�ended�31st�March,�2014,�the�Balance�Sheet�as�at�that�date,�the�Report�of�the�Board�of�Directors�and�the�Report�of�the�Auditors�thereon.

2.� To�declare�dividend�for�the�year�ended�31st�March�2014.

3.� To�appoint�a�Director� in�the�place�of� �Sudarsan�Varadaraj�(holding�DIN�00133533)�who�retires�by�rotation�and�being�eligible�offers�himself�for�re-appointment.

4.�� To� re-appoint� the�Auditors� and� to� fix� their� remuneration�and�in�this�regard�to�pass�with�or�without�modification(s),�the�following�resolution�as�an�Ordinary�Resolution:

� "RESOLVED�THAT�pursuant�to�the�Provisions�of�Section�139,�142� and� other� applicable� provisions,� if� any,� of� the�Companies�Act,�2013�(corresponding�to�Section�224,�and�other�applicable�provisions,� if� any�of� the�Companies�Act,�1956)�M/s.�RJC�Associates�(Firm�Registration�No.�003496S)�Chartered�Accountants,�Coimbatore�be�and� is�hereby� re-appointed�as�Statutory�Auditors�of� the�Company� to�hold�office�for�three�consecutive�years� �from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�57th�AGM�,�subject� to� ratification� by� the� shareholders� annually,� at� a�remuneration�as�may�be�decided�by�the�Board�of�Directors.”

SPECIAL�BUSINESS:

5.� To� consider� and� if� thought� fit,� to� pass� with� or� without�modification(s),� the� following� resolution� as� a� Special�Resolution

� “RESOLVED� THAT� pursuant� to� the� provisions� of� Sections�149,� 150,� 152�and�any�other� applicable�provisions�of� the�Companies� Act,� 2013� and� the� rules� made� thereunder�(including� any� statutory� modification(s)� or� re-enactment�thereof�for�the�time�being�in�force)�read�with�Schedule��IV�of�the�Companies�Act,�2013,�Dr.�Ganesh�Devaraj�(holding�DIN�00005238),�Director�of�the�Company�who�retires�by�rotation�at�the�Annual�General�Meeting�and�in�respect�of�whom�the�Company�has�received�a�notice�in�writing�from�a�member�proposing�his�candidature�for�the�office�of�Director,�be�and�is� hereby� appointed� as� an� Independent� Director� of� the�Company�for�five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the��59th�AGM�not�liable�to�retire�by�rotation”.�

6.� To� consider� and� if� thought� fit,� to� pass� with� or� without�modification(s),� the� following� resolution� as� � a� Special�Resolution.

� “RESOLVED� THAT�pursuant� to� the� provisions� of� Sections�149,�150,�152�and�any�other�applicable�provisions�of� the�Companies� Act,� 2013� and� the� rules� made� thereunder�(including� any� statutory�modification(s)� or� re-enactment�thereof�for�the�time�being�in�force)�read�with�Schedule�IV�of�the� Companies� Act,� 2013,� M.� Ramprasad� (holding� DIN�00004275),�Director�of�the�Company�whose�period�of�office�is� liable� to� determination� by� retirement� of� directors� by�rotation�and�in�respect�of�whom�the�Company�has�received�a� notice� in� writing� from� a� member� proposing� his�candidature� for� the� office� of� Director,� be� and� is� hereby�appointed�as�an�Independent�Director�of�the�Company�for�five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM�not�liable�to�retire�by�rotation”.�

7.� To� consider� and� if� thought� fit,� to� pass� with� or� without�modification(s),� the� following� resolution� as� a� Special�Resolution.

� “RESOLVED� THAT�pursuant� to� the� provisions� of� Sections�149,�150,�152�and�any�other�applicable�provisions�of� the�Companies� Act,� 2013� and� the� rules� made� thereunder�(including� any� statutory�modification(s)� or� re-enactment�thereof�for�the�time�being�in�force)�read�with�Schedule�IV�of�the� Companies� Act,� 2013,�B.� Vijayakumar� (holding� DIN�00015583),�Director�of�the�Company�whose�period�of�office�is� liable� to� determination� by� retirement� of� directors� by�rotation�and�in�respect�of�whom�the�Company�has�received�a� notice� in� writing� from� a� member� proposing� his�candidature� for� the� office� of� Director,� be� and� is� hereby�appointed�as�an�Independent�Director�of�the�Company�for�five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM�not�liable�to�retire�by�rotation”.�

8.� To� consider� and� if� thought� fit,� to� pass� with� or� without�modification(s),� the� following� resolution� as� Special�Resolution.

� “RESOLVED� THAT�pursuant� to� the� provisions� of� Sections�149,�150,�152�and�any�other�applicable�provisions�of� the�Companies� Act,� 2013� and� the� rules� made� thereunder�(including� any� statutory�modification(s)� or� re-enactment�thereof�for�the�time�being�in�force)�read�with�Schedule�IV�of�the�Companies�Act,�2013,�N.�Mohan�Nambiar�(holding�DIN�00003660),�Director�of�the�Company�whose�period�of�office�is� liable� to� determination� by� retirement� of� directors� by�rotation�and�in�respect�of�whom�the�Company�has�received�a� notice� in� writing� from� a� member� proposing� his�

3

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candidature� for� the� office� of� Director,� be� and� is� hereby�appointed�as�an�Independent�Director�of�the�Company�for�five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM�not�liable�to�retire�by�rotation”.�

� STATEMENT� PURSUANT� TO� SECTION� 102� OF� THE�COMPANIES�ACT,�2013

� Item�No.�5:

� Dr.� Ganesh� Devaraj� is� a� Non-Executive� Independent�Director�of�the�Company.�He�joined�the�Board�of�Directors�of�the�Company�on�30/10/2003�and�is�member�of�the�Audit�Committee� and� Remuneration� Committee� of� the� Board.�The� qualification� and� expertise� of� Dr.� Ganesh� Devaraj� is�detailed�in�the�Annexure�attached.

� Dr.� Ganesh� Devaraj� retires� by� rotation� at� the� ensuing�Annual� General� Meeting� under� the� erstwhile� applicable�provisions�of�the�Companies�Act�1956.�In�terms�of�Section�149�and�other�applicable�provisions�of�the�Companies�Act�2013,�an�independent�Director�should�be�appointed�for�a�fixed�term�and�is�not�liable�to�retire�by�rotation.�Dr.�Ganesh�Devaraj � being� el igible� and� offer ing� himself � for�appointment,� is� proposed� to� be� appointed� as� an�Independent�Director�for� �five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM.�A�notice�has�been�received�from�a�member�proposing�Dr.�Ganesh�Devaraj�as�a�candidate�for�the�office�of�Director�of�the�Company.

� In�the�opinion�of�the�Board,�Dr.�Ganesh�Devaraj�fulfils�the�conditions�specified�in�the�Companies�Act,�2013�and�Rules�made�thereunder�for�his�appointment�as�an�Independent�Director� of� the� Company� and� is� independent� of� the�management.� Copy� of� the� letter� of� appointment� of� Dr.�Ganesh� Devaraj� as� an� Independent� Director� would� be�available�for�inspection�without�any�fee�by�the�members�at�the� registered� office� of� the� Company� during� normal�business�hours�on�any�working�day.

� The�Board�considers�that�his�continued�association�would�be�of�immense�benefit�to�the�Company�and�it�is�desirable�to�continue�to�avail�his�services�as�an� Independent�Director�and� hence� recommends� the� resolution� in� relation� to�appointment� of� Dr.� Ganesh� Devaraj� as� an� Independent�Director,� for� the� approval� of� the� shareholders� of� the�Company.

� Except�Dr.�Ganesh�Devaraj,�being�the�appointee,�none�of�the�Directors�and�Key�Managerial�Persons�of�the�Company�and�their�relatives�is�concerned�or�interested,�financial�or�otherwise,�in�the�resolution�set�out�in�Item�no�5.�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

� Item�No.�6:

� M.�Ramprasad�is�a�Non-�Executive�Independent�Director�of�the� Company.� He� joined� the� Board� of� Directors� of� the�Company�on�25/09/2004�and�is�Chairman�and�Member�of�the�Audit�Committee�and�Remuneration�Committee�of�the�Board.�The�qualification�and�expertise�of�M.�Ramprasad�is�detailed�in�the�Annexure�attached.

� M.�Ramprasad�is�a�Director�whose�period�of�office�is�liable�to�determination�by�retirement�of�Directors�by�rotation�under�the�erstwhile�applicable�provisions�of�the�Companies�Act�1956.� In� terms� of� Section� 149� and� other� applicable�provisions� of� the� Companies� Act� 2013,� an� Independent�Director�should�be�appointed�for�a� fixed�term�and�is�not�liable�to�retire�by�rotation.�M.�Ramprasad�being�eligible�and�offering� himself� for� appointment,� is� proposed� to� be�appointed�as�an�Independent�Director�for��five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM.�A�notice�has�been�received�from�a�member�proposing�M.�Ramprasad�as�a�candidate�for�the�office�of�Director�of�the�Company.

� In� the� opinion� of� the� Board,� M.� Ramprasad� fulfils� the�conditions�specified�in�the�Companies�Act,�2013�and�Rules�made�thereunder�for�his�appointment�as�an�Independent�Director� of� the� Company� and� is� independent� of� the�management.� Copy� of� the� letter� of� appointment� of�M.� Ramprasad� as� an� Independent� Director� would� be�available�for�inspection�without�any�fee�by�the�members�at�the� registered� office� of� the� Company� during� normal�business�hours�on�any�working�day.

� The�Board�considers�that�his�continued�association�would�be�of�immense�benefit�to�the�Company�and�it�is�desirable�to�continue�to�avail�his�services�as�an�Independent�Director�and� hence� recommends� the� resolution� in� relation� to�appointment�of�M.�Ramprasad�as�an�Independent�Director,�for�the�approval�of�the�shareholders�of�the�Company.

� Except�M.�Ramprasad,�being� the�appointee,�none�of� the�Directors�and�Key�Managerial�Persons�of�the�Company�and�their� relatives� is� concerned� or� interested,� financial� or�otherwise,�in�the�resolution�set�out�in�Item�no�6.�

� Item�No�7:

� B.�Vijayakumar�is�a�Non-�Executive�Independent�Director�of�the� Company.� He� joined� the� Board� of� Directors� of� the�Company�on�11/01/1993.�The�qualification�and�expertise�of�B.�Vijayakumar�is�detailed�in�the�Annexure�attached.

4

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� B.�Vijayakumar�is�a�Director�whose�period�of�office�is�liable�to�determination�by�retirement�of�Directors�by�rotation�under�the�erstwhile�applicable�provisions�of�the�Companies�Act�1956.� In� terms� of� Section� 149� and� other� applicable�provisions� of� the� Companies� Act� 2013,� an� independent�Director� should�be�appointed� for�a� fixed� term�and� is�not�liable�to�retire�by�rotation.�B.�Vijayakumar�being�eligible�and�offering� himself� for� appointment,� is� proposed� to� be�appointed�as�an�Independent�Director�for��five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of� the�59th�AGM.�A�notice�has�been� received�from�a�member�proposing�B.�Vijayakumar�as�a�candidate�for�the�office�of�Director�of�the�Company.

� In� the� opinion� of� the� Board,� B.� Vijayakumar� fulfils� the�conditions�specified�in�the�Companies�Act,�2013�and�Rules�made�thereunder�for�his�appointment�as�an�Independent�Director� of� the� Company� and� is� independent� of� the�management.� Copy� of� the� letter� of� appointment� ofB.� Vijayakumar� as� an� Independent� Director� would� be�available�for�inspection�without�any�fee�by�the�members�at�the� registered� office� of� the� Company� during� normal�business�hours�on�any�working�day.

� The�Board�considers�that�his�continued�association�would�be�of�immense�benefit�to�the�Company�and�it�is�desirable�to�continue� to�avail�his� services�as�an� Independent�Director�and� hence� recommends� the� resolution� in� relation� to�appointment�of�B.�Vijayakumar�as�an�Independent�Director,�for�the�approval�of�the�shareholders�of�the�Company.

� Except�B.� Vijayakumar,�being� the�appointee,�none�of� the�Directors�and�Key�Managerial�Persons�of�the�Company�and�their� relatives� is� concerned� or� interested,� financial� or�otherwise,�in�the�resolution�set�out�in�Item�no�7.�

� Item�No�8:

� N.� Mohan� Nambiar� is� a� Non-Executive� Independent�Director�of�the�Company.�He�joined�the�Board�of�Directors�of�the�Company�on�16/02/1983�and�is�Chairman�and�Member�of� the� Shareholder� Investor� Grievance� Committee� and�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Member� of� Audit� Committee� and� Remuneration�Committee�of�the�Board.�The�qualification�and�expertise�of�N.��Mohan�Nambiar�is�detailed�in�the�Annexure�attached.

� N.�Mohan�Nambiar�is�a�Director�whose�period�of�office�is�liable� to� determination� by� retirement� of� Directors� by�rotation�under� the�erstwhile�applicable�provisions�of� the�Companies�Act� 1956.� In� terms� of� Section� 149� and�other�applicable� provisions� of� the� Companies� Act� 2013,� an�Independent�Director�should�be�appointed�for�a�fixed�term�and� is�not� liable�to�retire�by�rotation.�N.�Mohan�Nambiar�being� eligible� and� offering� himself� for� appointment,� is�proposed�to�be�appointed�as�an�Independent�Director�for��five�consecutive�years�from�the�conclusion�of�the�ensuing�54th�AGM�till�the�conclusion�of�the�59th�AGM.�A�notice�has�been� received� from� a� member� proposing� N.� Mohan�Nambiar� as� a� candidate� for� the� office� of� Director� of� the�Company.

� In�the�opinion�of�the�Board,�N.�Mohan�Nambiar�fulfils�the�conditions�specified�in�the�Companies�Act,�2013�and�Rules�made�thereunder�for�his�appointment�as�an�Independent�Director� of� the� Company� and� is� independent� of� the�management.� Copy� of� the� letter� of� appointment� of� N.�Mohan� Nambiar� as� an� Independent� Director� would� be�available�for�inspection�without�any�fee�by�the�members�at�the� registered� office� of� the� Company� during� normal�business�hours�on�any�working�day.

� The�Board�considers�that�his�continued�association�would�be�of�immense�benefit�to�the�Company�and�it�is�desirable�to�continue�to�avail�his�services�as�an�Independent�Director�and� hence� recommends� the� resolution� in� relation� to�appointment� of� N.� Mohan� Nambiar� as� an� Independent�Director,� for� the� approval� of� the� shareholders� of� the�Company.

� Except�N.�Mohan�Nambiar,�being�the�appointee,�none�of�the�Directors�and�Key�Managerial�Persons�of�the�Company�and�their�relatives�is�concerned�or�interested,�financial�or�otherwise,�in�the�resolution�set�out�in�Item�no�8.

5

� � � � � By�Order�of�the�Board� � � � � For��ELGI�EQUIPMENTS�LIMITED

Place� :�� Coimbatore� � � R.��SYAM�KUMARDate� :�� 29/05/2014� � � Company�Secretary

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NOTES:

1)� A� MEMBER� ENTITLED� TO� ATTEND� AND� VOTE� AT� THE�MEETING� IS�ENTITLED�TO�APPOINT�A�PROXY�TO�ATTEND�AND�VOTE� INSTEAD�OF�HIMSELF�AND� THE� PROXY�NEED�NOT� BE� A� MEMBER.� THE� INSTRUMENT� APPOINTING� A�PROXY�SHOULD�BE�DEPOSITED�AT�THE�REGISTERED�OFFICE�OF�THE�COMPANY�NOT�LESS�THAN�48�HOURS�BEFORE�THE�COMMENCEMENT�OF�THE�MEETING.

� A�PERSON�CAN�ACT�AS�A�PROXY�ON�BEHALF�OF�MEMBERS�NOT�EXCEEDING�FIFTY�AND�HOLDING�IN�THE�AGGREGATE�NOT� MORE� THAN� TEN� PERCENT� OF� THE� TOTAL� SHARE�CAPITAL�OF�THE�COMPANY�CARRYING�VOTING�RIGHTS.�A�MEMBER� HOLDING� MORE� THAN� TEN� PERCENT� OF� THE�TOTAL� SHARE� CAPITAL� OF� THE� COMPANY� CARRYING�VOTING�RIGHTS�MAY�APPOINT�A�SINGLE�PERSON�AS�PROXY�AND�SUCH�PERSON�SHALL�NOT�ACT�AS�A�PROXY�FOR�ANY�OTHER�PERSON�OR�SHAREHOLDER

2.���Corporate��members��intending��to��send��their��authorised��representatives� �to� �attend� �the�Meeting�are�requested�to�send� to� the� Company� a� certified� copy� of� the� Board�Resolution�authorizing�their�representative�to�attend�and�vote�on�their�behalf�at�the�Meeting.

3.�� �Members�/�Proxies�should�bring�the�duly�filled�Attendance�Slip�enclosed�herewith�to�attend�the�meeting.

4.�� Details��under��Clause�49��of��the��Listing��Agreement��with��the� �Stock� �Exchanges� �in�respect�of�the�Directors�seeking�appointment� /� re-appointment� at� the� Annual� General�Meeting�are�furnished�and�forms�a�part�of�the�notice.�The�Directors� have� furnished� the� requisite� consents� /�declarations�for�their�appointment�/�re-appointment.�����

5.� �Pursuant�to�the�provisions�of�Section�91�of�the�Companies�Act�2013�(corresponding�to�Sec�154�of�the�Companies�Act�1956),� the� Register� of� Members� and� the� Share� Transfer�Books�of�the�Company�will�remain�closed�from�10th�Day�of�September,� 2014� to� 25th�Day� of� September,� 2014� (both�days�inclusive).

6.���The�dividend�proposed�to�be�declared�at�the�meeting,�will�be� made� payable� on� or� before� 21/10/2014� to� those�members�whose�names�appear�on�the�Register�of�Members�of�the�Company�on�09/09/2014.

7.�� Members� holding� shares� in� electronic� form� are� hereby�informed� that� bank� particulars� registered� against� their�depository� accounts� will� be� used� by� the� Company� for�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

payment� of� dividend.� The� Company� or� the� Registrars�cannot� act� on� any� request� received� directly� from� the�members�holding�shares�in�electronic�form�for�any�change�in�bank�particulars�or�bank�mandates.�Such�changes�are�to�be� advised� only� to� the� depository� participant� of� the�Members.�Members�holding�shares� in�physical� form�and�desirous�of�either�registering�bank�particulars�or�changing�bank�particulars�already�registered�against�their�respective�folios�for�payment�of�dividend�are�requested�to�write�to�the�Registrar�and�Share�Transfer�Agents�of�the�Company.

.�8.� Change�of�Address:�Members�are�requested�to�notify�any�

change� of� address� and� bank� details� to� their� depository�participants�in�respect�of�their�holdings�in�electronic�form�and� in� respect� of� shares� held� in� physical� form,� to� the�secretarial� department� at� the� registered� office� of� the�Company�or�to��M/s.�Link�Intime�India�Pvt.�Limited,�,�"Surya",�35 � May� F lower � Avenue, � Behind� Senthi l � Nagar ,�Sowripalayam,� Coimbatore-� 641028,� the� Registrar� and�Share�Transfer�Agent�of�the�Company.

9.� � �Dividend�of�prior�years:� �Pursuant�to�Section�205A�of�the�Companies�Act,� 1956,� the�Dividend�which� remained�un-encashed�/�unclaimed�for�a�period�of�seven�years�from�the�date�of�transfer�to�the�unpaid�Dividend�account�is�required�to�be�transferred�to�the�"Investor�Education�and�Protection�Fund"�established�by�the�Central�Government.�According�to�the�relevant�provisions�of�the�Companies�Act,�1956,�as�amended,�no�claim�shall� lie�against� the� said� fund�or� the�Company� for� the� amount� of� unclaimed� Dividend� so�transferred� to� the� said� Fund.� Members� who� have� not�encashed�the�Dividend�warrant(s)�so�far,�since�the�financial�year� 2006-2007,� are� requested� to� send� their� claim�immediately� to� the�Company�/�Registrar� for� issue�of�pay�order�/�demand�draft�in�lieu�thereof.

10.�Members� who� hold� shares� in� physical� form� in� multiple�folios�in�identical�names�or�joint�holding�in�the�same�order�of�names�are�requested�to�send�the�share�certificates�to�the�Registrar�and�Share�Transfer�Agent,�for�consolidation�into�a�single�folio.�

11.�The� Securities� and� Exchange� Board� of� India� (SEBI)� has�mandated�the�submission�of�Permanent�Account�Number�(PAN)�by�every�participant�in�securities�market.�Members�holding�shares�in�electronic�form�are,�therefore,�requested�to� submit� the� PAN� to� their� Depository� Participants�with�whom� they� are� maintaining� their� demat� account(s).�Members�holding�shares�in�physical�form�can�submit�their�PAN�details�to�the�Registrar�and�Share�Transfer�Agent.

6

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12.�Copies�of�the�Annual�Report�2014,�the�Notice�of�the�54th�

Annual�General�Meeting�of�the�Company�and�instructions�

for�e-voting,�along�with� the�Attendance�Slip,�Proxy�Form�

and�Postal�Ballot�Form�are�being�sent�by�electronic�mode�

only� to� all� the� members� whose� email� addresses� are�

registered�with�the�Company�/�Depository�Participant(s)�for�

communication� purposes� unless� any� member� has�

requested�for�a�hard�copy�of�the�same.�For�members�who�

have�not�registered�their�email�address,�physical�copies�of�

the�Annual�Report�2014�are�being�sent�by�permitted�mode.

13.�Members�may�also�note�that�the�Notice�of�the�54th��Annual�

General� Meeting� and� the� Annual� Report� 2014� will� be�

available� on� the� Company's� website,� www.elgi.com.� The�

physical� copies� of� the� aforesaid� documents� will� also� be�

available�at�the�Company's�registered�office�for�inspection�

during�normal�business�hours�on�any�working�days.�

14� Members�holding�shares�in�electronic�form�may�please�note�

that�as�per�the�regulations�of�National�Securities�Depository�

Limited� (NSDL)� and� Central� Depository� Services� (India)�

Limited�(CDSL),�the�Company�is�obliged�to�print�the�details�

on�the�dividend�warrants�as�furnished�by�these�Depositories�

to� the�Company�and� the�Company�cannot�entertain�any�

request�for�deletion/change�of�bank�details�already�printed�

on�dividend�warrants�as�per�information�received�from�the�

concerned�Depositories.� � In� this� regard,�Members�should�

contact� their� Depository� Participants� (DP)� and� furnish�

particulars�of�any�changes�desired�by�them.

15� Pursuant�to�the�provisions�of�Section�72�of�the�Companies�

Act,�2013,�Members�may�file�Nomination�Forms�in�respect�

of� their� physical� shareholdings.� Any� Member� wishing� to�

avail�this�facility�may�submit�to�the�Company's�Registrar�&�

Share�Transfer�Agent�the�prescribed�Statutory�Form.�Should�

any� assistance�be�desired,�Members� should�get� in� touch�

with�the�Company's�Registrar�&�Share�Transfer�Agent.

16� Members�who�have�not�received�the�Split�Share�Certificates�

(Re.1/-�face�value)�are�requested�to�receive�the�Split�Share�

Certificates� by� surrendering� their� old� Share� Certificates�

(Rs.10/-� face� value)� to� the� Company's� Registrar� &� Share�

Transfer�Agent�immediately.

17.��Members� are� requested� to� register� /� update� their� Email�

address� in� respect� of� shares� held� in� dematerialized� form�

with�their�respective�Depository�Participants��and�in�respect�

of�shares�held�in�physical�form�with�M/s.�Link�Intime�(India)�

Pvt.�Ltd.

18.�Voting�through�electronic�mean

� Pursuant�to�Clause�35B�of�listing�agreement�with�the�stock�

exchange� and� the� provisions� of� Section� 108� of� the�

Companies�Act,�2013�read�with�Rule�20�of�the�Companies�

(Management� and� Administration)� Rules,� 2014,� the�

Company� is� pleased� to� provide� its� members� facility� to�

exercise� their� right� to� vote� at� the� 54th� Annual� General�

Meeting�(AGM)�by�electronic�means�and�the�business�may�

be� transacted� through� e-Voting� Services� provided� by�

Central�Depository�Services�(India)�Limited�(CDSL):�� In�terms�of�Clause�35B�of�the�listing�agreement,�in�order�to�

enable�its�members,�who�do�not�have�access�to�e-voting�

facility,�to�send�their�assent�or�dissent�in�writing�respect�of�

the�resolutions�as�set�out�in�this�notice,�a�Postal�Ballot�Form�

is�annexed.�A�member�desiring�to�exercise�vote�by�Postal�

Ballot�shall�complete�the�enclosed�Ballot�Form�with�assent�

(for)�or�dissent�(against)�and�send�it�to�the�Scrutinizer�Mr.�

MD� Selvaraj,� Proprietor� MDS� &� Associates,� Company�

Secretary� “Surya”,� 35� Mayflower� Avenue,� behind� Senthil�

Nagar,�Sowripalayam�Road,�Coimbatore�-�641�028�so�as�to�

reach�him�on�or�before�22nd�September,�2014�by�6.00�PM.�

Any�Ballot�Form�received�after�the�said�date�shall�treated�as�

if�the�reply�from�the�members�has�not�been�received.�Kindly�

note�that�members�can�opt�for�only�one�mode�of�voting�i.e.,�

either�by�Postal�Ballot�or�through�e-voting.�If�the�members�

are�opting�for�e-voting�then�do�not�vote�by�Postal�Ballot�or�

vice-versa.

� However� incase�of�members�casting� their�vote�by�Postal�

Ballot� and� e-voting,� then� voting� done� through� e-voting�

shall� prevail� and� voting� done� by� physical� ballot� will� be�

treated�as�invalid.

The�instructions�for�members�for�voting�electronically�are�as�under:-

In�case�of�members�receiving�e-mail:

(i)� Log�on�to�the�e-voting�website�www.evotingindia.com�(ii)� Click�on�“Shareholders”�tab.(iii)�Now�Enter�your�User�ID�� a.� For�CDSL:�16�digits�beneficiary�ID,�� b.� For�NSDL:�8�Character�DP�ID�followed�by�8�Digits�Client�

ID,�� c.� Members�holding�shares�in�Physical�Form�should�enter�

Folio�Number�registered�with�the�Company.(iv)�Next�enter�the�Image�Verification�as�displayed�and�Click�on��

Login.

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

7

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

8

(v)� If�you�are�holding�shares�in�demat�form�and�had�logged�on�

to� www.evotingindia.com�and�voted�on�an�earlier�voting�of��

any�company,�then�your�existing�password�is�to�be�used.

(vi)�If� you� are� a� first� time�user� follow� the� steps�given�below:

For�Members�holding�shares�in�Demat�Form�and�Physical�Form

PAN*� � Enter�your�10�digit�alpha-numeric�*PAN�issued�by�Income� Tax� Department� (Applicable� for� both�demat � shareholders � as � wel l � as � phys ica l�shareholders)

� � � l�Members�who�have�not�updated�their�PAN�with�the� Company/Depository� Participant� are�requested� to� use� the� first� two� letters� of� their�name� and� the� last� 8� digits� of� the� demat�account/folio�number�in�the�PAN�field.

� � � l�In�case�the�folio�number�is�less�than�8�digits�enter�the�applicable�number�of�0's�before�the�number�after� the� first� two� characters� of� the� name� in�CAPITAL� letters.� Eg.� If� your� name� is� Ramesh�Kumar� with� folio� number� 100� then� enter�RA00000100�in�the�PAN�field.

DOB#� � Enter�the�Date�of�Birth�as�recorded�in�your�demat�account� or� in� the� company� records� for� the� said�demat�account�or�folio�in�dd/mm/yyyy�format.

Dividend�� Enter�the�Dividend�Bank�Details�as�recorded�in�Bank� � your�demat�account�or�in�the�company�records�Details#� for�the�said�demat�account�or�folio.�� � � l�Please�enter�the�DOB�or�Dividend�Bank�Details�

in�order�to�login.�If�the�details�are�not�recorded�with�the�depository�or�company�please�enter�the�number�of�shares�held�by�you�as�on�the�cut�off�date�in�the�Dividend�Bank�details�field.

(vii)� After� entering� these� details� appropriately,� click� on�“SUBMIT”�tab.

(viii)� � Members�holding�shares�in�physical�form�will�then�reach�directly�the�Company�selection�screen.�However,�members�holding�shares�in�demat�form�will�now�reach�'Password�Creation'�menu�wherein�they�are�required�to�mandatorily� enter� their� login� password� in� the� new�password�field.�Kindly�note�that�this�password�is�to�be�also�used�by�the�demat�holders�for�voting�for�resolutions�

of� any� other� company� on� which� they� are� eligible� to�vote,�provided�that�company�opts�for�e-voting�through�CDSL�platform.�It�is�strongly�recommended�not�to�share�your�password�with�any�other�person�and�take�utmost�care�to�keep�your�password�confidential.

(ix)�� For� Members� holding� shares� in� physical� form,� the�details�can�be�used�only�for�e-voting�on�the�resolutions�contained�in�this�Notice.

(x)� � Click� on� the� EVSN� for� the� relevant� Elgi� Equipments�Limited�on�which�you�choose�to�vote.

(xi)�� On� the� voting� page,� you� will� see� “RESOLUTION�DESCRIPTION”� and� against� the� same� the� option�“YES/NO”� for� voting.� Select� the� option� YES� or� NO� as�desired.�The�option�YES�implies�that�you�assent�to�the�Resolution�and�option�NO�implies�that�you�dissent�to�the�Resolution.

(xii)� Click�on� the� “RESOLUTIONS�FILE� LINK”� if� you�wish� to�view�the�entire�Resolution�details.

(xiii)� After�selecting�the�resolution�you�have�decided�to�vote�click�on�“SUBMIT”.�A�confirmation�box�will�be�displayed.�If�you�wish�to�confirm�your�vote,�click�on�“OK”,�else�to�change�your�vote,�click�on�“CANCEL”�and�accordingly�modify�your�vote.

(xiv)� Once�you�“CONFIRM”�your�vote�on�the�resolution,�you�will�not�be�allowed�to�modify�your�vote.

(xv)� You�can�also�take�out�print�of�the�voting�done�by�you�by�clicking�on�“Click�here�to�print”�option�on�the�Voting�page.

(xvi)� If� Demat� account� holder� has� forgotten� the� changed�password� then� Enter� the� User� ID� and� the� image�verification�code�and�click�on�Forgot�Password�&�enter�the�details�as�prompted�by�the�system.

l� Institutional�shareholders�(i.e.�other�than�Individuals,�HUF,�N R I � e t c . ) � a r e � r e q u i r e d � t o � l o g � o n � t o�https://www.evotingindia.co.in�and�register�themselves�as�Corporates.

l� They� should� submit� a� scanned� copy� of� the� Registration�Form� bearing� the� stamp� and� sign� of� the� entity� to�[email protected].

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l� After�receiving�the�login�details�they�have�to�create�a�user,��who�would�be�able�to�link�the�account(s)�which�they�wish�to�vote�on.�

l� T h e � l i s t � o f � a c c o u n t s � s h o u l d � b e � m a i l e d � t o�[email protected]� and� on� approval� of� the�accounts�they�would�be�able�to�cast�their�vote.�

l� They�should�upload�a�scanned�copy�of�the�Board�Resolution�and� Power� of� Attorney� (POA)� which� they� have� issued� in�favour�of�the�Custodian,�if�any,�in�PDF�format�in�the�system�for�the�scrutinizer�to�verify�the�same.

In�case�of�members�receiving�the�physical�copy:

(A)�Please�follow�all�steps�from�sl.�no.�(i)�to�sl.�no.�(xv)�above�to�cast�vote.

(B)�The�voting�period�begins�on�19.09.2014� �at� �9.00�AM�and�ends� on� 21.09.2014� at� 6.00� PM.� During� this� period�shareholders'� of� the� Company,� holding� shares� either� in�physical� form�or� in�dematerialized�form,�as�on�the�cut-off��date�of�15-08-2014,�may�cast�their�vote�electronically.�The�e-voting� module� shall� be� disabled� by� CDSL� for� voting�thereafter.

(C)�In�case�you�have�any�queries�or�issues�regarding�e-voting,�you�may�refer�the�Frequently�Asked�Questions�(“FAQs”)�and�e-voting�manual�available�at�www.evotingindia.co.in�under�h e l p � s e c t i o n � o r � w r i t e � a n � e m a i l � t o�[email protected].

In�case�of�members�desiring�to�exercise�vote�by�Postal�Ballot:

A� member� desiring� to� exercise� vote� by� Postal� Ballot� should�complete�the�Postal�Ballot�Form�and�send�it�to�the�Scrutinizer�in�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

the�enclosed�self-addressed�business�reply�envelope�properly�sealed.� Members� are� requested� to� read� the� instructions�contained�on�the�reverse�of�the�Postal�Ballot�Form�and�follow�the�same.

As�the�Company�has�provided�e-voting�/�Postal�Ballot�voting�in�terms�of�Clause�35B�of�the�Listing�Agreement,�members�may�please�note�that�there�will�be�only�one�mode�of�voting�either�through�e-voting�or�by�Postal�Ballot.�The�scrutinizer�will�collate�the� votes� downloaded� from� the� e-voting� system� and� votes�received� through�Postal� Ballot� to�declare� the� final� result� for�each�of�the�resolutions�forming�part�of�the�notice�of�Annual�General�Meeting.

The�voting�rights�of�shareholders�shall�be�in�proportion�to�their�shares�of�the�paid�up�equity�share�capital�of�the�Company�as�on�the�cut-off�date�Friday,�15th�August,�2014�Mr.�MD�Selvaraj�FCS,�Proprietor� of� MDS� &� Associates,� Company� Secretaries,�Coimbatore�has�been�appointed�as�the�Scrutinizer�to�scrutinize�the�e-voting�process� /�Postal�Ballot� in�a� fair�and� transparent�manner.

The�Results�shall�be�declared�on�the�Annual�General�Meeting�of�the�Company.

The�results�declared�along�with�the�scrutinizers�report�shall�be�placed�on�the�companyʼs�website�www.elgi.com�and�on�the�website�of�CDSL�within� two�working�days�of�passing�of� the�resolutions�and�communicated�to�the�Stock�Exchanges�where�the�Companyʼs�shares�are�listed.�

9

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

INFORMATION�REQUIRED�TO�BE�FURNISHED�UNDER�CLAUSE�49�VIII�(E)�OF�THE�LISTING�AGREEMENT

As�required�under�Clause�49�of�the�Listing�Agreement�the�particulars�of�Directors�who�are�proposed�to�be�appointed/reappointed�at�this�Meeting�are�given�below:-�

Name� Sudarsan�Varadaraj Dr.�Ganesh�Devaraj M.�Ramprasad B.�Vijayakumar N.�Mohan�Nambiar

DIN 00133533 00005238 00004275 00015583 00003660

Date�of�Birth 22�/�01�/�1958 17�/�03�/�1968 12�/�07�/�1966 22�/�01�/�1953 11�/�04�/�1942

Nationality Indian� Indian� Indian� Indian� Indian�

DOA�on�the�Board 18�/�11�/�1993 30�/�10�/�2003 25�/�09�/�2004 11�/�01�/�1993 16�/�02�/�1983

Relationship�withother�Director

Brother�of�Mr.�JairamVaradaraj,�ManagingDirector

None None None None

Qualification B.E.�(Hons.),�M.S.(Mechanical�Engg.) B.Sc.,�M.B.A. B.Sc. BA�(Eco)

B.E.�(Electronics�andCommunication)M.S.�(Electrical�Engg,)Ph.D.�(USA)

Expertise�in�SpecificFunctional�areas

More�than�27�years�experience�as�on�Industrialist

More�than�25�years�experience�as�a�Finance�Consultant

More�than�27�years�experience�as�an�Industrialist

More�than�41�years�experience�as�an�Industrialist

More�than�17�years�experience�as�an�Industrialist

No.�of�shares�held 41786 8000 50000 --

List�of�directorships�held�in�other�Companies

1.� Elgi�Rubber�Company�Ltd.

2.� Treadsdirect�Ltd.3.� Titan�Tyrecare�

Products�Ltd.4.� Elgi�Ultra�Industries�

Ltd.5.� LRG�Technologies�

Ltd.6.� Super�Spinning�Mills�

Ltd.7.� KLRF�Ltd.8.� Tyre�Point�(P)�Ltd.9.� Festo�Controls�(P)�Ltd.10.� Treadsdirect�Ltd.,�

Kenya11.� Treadsdirect�Ltd.,�Sri�

Lanka12.� Treadsdirect�LLC.�USA13.� Rubber�Resources�BV,�

The�Netherlands14.� Pincott�International�

Pty.�Australia

1.� Soliton�Technologies�(P)�Ltd.

2.� Solition�Automation�India�(P)�Ltd.

1.� ATS�Elgi�Ltd.2.� MAPE�Advisory�Group�

(P)�Ltd.3.� MAPE�Securities�(P)�

Ltd.4.� MAPE�Finserve�(P)�

Ltd.

1.� L.G.�Balakrishnan�&�Bros.�Ltd.

2.� LGB�Forge�Ltd.3.� Super�Spinning�Mills�

Ltd.4.� South�Western�Engg.�

(I)�Ltd.5.� Rolon�Fine�Blank�Ltd.6.� LGB�Rolon�Chain�Ltd.7.� LG�Sports�Ltd.8.� Elgi�Automotive�

Service�(P)�Ltd.9.� LGB�Auto�Products

(P)�Ltd.10.� LG�Farm�Products�(P)�

Ltd.11.� BCW�V�Tech�India�(P)�

Ltd.� (Subsidiary�of�L.G.�

Balakrishnan�&�Bros�Ltd.)

12.� Renold�Chain�India�(P)�Ltd.

� (Subisdiary�of�Renold�holding�PLC)

13.� LGB�Fuel�systems�(P)�Ltd.

14.� Super�Speeds�(P)�Ltd.15.� Super�Transports�(P)�

Ltd.16.� LGB�USA�INC17.� GFM�CORP�LLC

Chairman�/�Member�of�the�Committees�of�the�Boards�of�other�companies�in�which�he�is�Director

1.� Elgi�Rubber�Company�Ltd�-�Share�Transfer�Committee�&�Finance�&�Administrative�Committee

2.� Super�Spinning�Mills�Ltd.�-�Audit�Committee�&�Remuneration�Committee

3.� KLRF�Ltd.�-�Audit�Committee�&�Remuneration�Committee

1.� L.G.�Balakrishnan�&�Bros.�Ltd.�Share�Transfer�Committee

2.� LGB�Forge�Ltd.�-�Share�Transfer�Committee

3.� Super�Spinning�Mills�Ltd.�-�Audit�Committee�&�Remuneration�Committee

� � � � � By�Order�of�the�Board� � � � � For��ELGI�EQUIPMENTS�LIMITED

Place� :�� Coimbatore� � � R.��SYAM�KUMARDate� :�� 29/05/2014� � � Company�Secretary

10

1.�Lakshmi�Apparels�&�����Wovens�Ltd.2.�The�Palani�Andavar����Mills�Ltd.

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Management�Discussion�and�AnalysisThe�markets�worldwide�exhibited�differing�levels�of�recovery�

from�the�past�economic�slow�down.� �While�many�of�the�key�

markets� where� the� Company� is� present� grew� well,� India�

continued� to� be� a� disappointment.� � While� the� Company�

performed� well� in� these� key� markets� it� was� sufficient� to�

compensate�for�the�steep�fall�in�demand�in�India.�Nevertheless,�

this� is�a�good�sign� for� the� future�of� the�Company�as�greater�

presence�in�key�global�markets�will�off�set�the�volatility�in�India.

During� the� year,� the� Company's� new� foundry� commenced�

commercial�production.�This�backward�integration�was�done�

primarily�to�improve�the�quality�of�our�products.��This�has�been�

achieved�in�significant�measure�besides�the�added�benefit�of�

having�a�lower�cost�source�for�castings.

COMPRESSORS

The�compressor�business�accounted�for�87%�of�the�total�sales�

of� the� Company.� � It� accounts� for� 89%� of� the� profits� of� the�

Company� and� 86%� of� the� capital� employed.� � This� business�

presently�employs�1668�people�and�grew�by�23%.

PERFORMANCE

Domestic�business�remained�static�throughout�the�year�due�to�

uncertain� market� conditions.� Prolonged� delays� in� the�

execution� of� core� sector� projects� significantly� affected� the�

business.�While�the�Company�has�been�able�to�retain�its�market�

share,�it�has�pushed�ahead�in�some�segments.�Continued�focus�

on� the� after� market� segment� resulted� in� greater� revenue�

stability�and�secure�profitability.

Growth� in� international� business� was� encouraging.� The�

Company's� new� range� of� products� �was�well� received� in� all�

markets�and�able�to�make�a�mark�in�a�very�short�time.�This�has�

been� particularly� observed� in� the� European� and� American�

markets.�Besides�North�America,� �the�Company's�performance�

in�South�Americas�has�also�been�quite�positive�and�stronger�

traction�is�being�gained.��

The� performance� in� Asia� has� been� disappointing.� � While�

markets� have� been� positive,� the� Company� faced� significant�

challenges� in� creating� a� robust� distribution� channel.� � Some�

positive� and� strong� channel� partnerships� have� been�

established�and�the�results�will�be�more�visible�in�coming�years.��

In�spite�of�this,�some�significant�milestones�were�achieved,�the�

most� important� being� the� creation� of� multiple� reference�

installations�for�oil�free�screw�compressors.�China�continues�to�

be� a� challenge.� � It� is� a� large� market� but� an� extremely�

competitive�one.� �Special�products�and�programs�are�being�

developed�to�address�this�market.��

Business� in�the�Middle�East�was�encouraging.� �New�markets�

and�new�products�have�been�launched�in�this�region�and�the�

reception� to� the�products� has�been�positive.� �While� certain�

countries�in�Africa�have�grown�strongly,�South�Africa�continues�

to�be�a�challenge.��

OPPORTUNITIES

The� change� in� the� central� government� in� India� and� the�attendant�promises�of� swift� economic� activity� have�buoyed�the� sentiments� but� actual� results� are� yet� to� be� seen� in� the�market.��However,�it�is�expected�to�only�improve�and�hence�the�demand�in�India�should�be�positive�in�the�coming�years.��Global�economic� indicators� also� show� improvement� due� to� the�recovery� in� high-income� economies� as� well� as� moderate�growth� in� China.� Well� established� presence� in� the� strategic�markets�combined�with�competitive�products�is�expected�to�contribute�significantly�to�the�revenue.

THREATS

While�the�sentiments�are�positive�in�India,�substantive�action�on�the�ground�is�yet�to�materialize.�Hence,�the�time�frame�to�realize� the�promises�may�be� longer� than� expected� and� this�could�dampen�growth.�In�spite�of�a�slow�down,�India�continues�to� be� an� attractive� destination� for� many� companies� and�therefore,�we�expect�more� competitive�pressures� from�new�players.� � Gaining� significant� market� share� in� developed�markets�require�substantial�amount�of�effort�to�overcome�the�challenges�of�an�unknown�brand�and�the�stigma�associated�with�"made�in�India".�These�efforts�would�take�time�to�produce�results.

ATS�-�Elgi

The�automotive�equipment�business�accounted�for�9%�of�the�total�sales�of�the�Company.��This�business�accounts�for�11%�of�the�profits�of�the�Company�and�10%�of�the�capital�employed�by�the�Company.�The�business�employs�365�people.�This�year�,�the�business� has� registered� a� negative� growth� of� 9%� over� the�previous�year.

11

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PERFORMANCE

The�Company's�performance�is�closely�linked�to�the�expansion�of� service� facilities� by� automotive� manufacturers� and� their�dealers.� �Due�to�extreme�sluggishness�in�the�automotive�sales,�the�expansion�of�service�facilities�was�very�minimal.�Passenger�car�sales�were�down�by�6%�and�commercial�vehicle�sales�were�down�by�20%�compared�to�the�previous�year.�Not�only�were�less�service�outlets�activated�by�various�vehicle�manufacturers,�the�average�value�of��investments�in�equipment�per�workshop�was�also�lower.��Though�the�business�sustained�its�market�share�throughout� the� year,� the� above� factors� have� resulted� in�considerable� reduction� in� demand� for� new� equipment.� The�Company� continues� its� focus� on� new� product� launches� in�various� segments� and� expand� its� after� sales� service� related�activities.

Exports� business� was� down� by� 11%� over� the� previous� year.�During� the� previous� year,� most� major� markets� where� the�Company�exports�its�products�have�been�affected�by�political�uncertainties�or�poor�economic�growth.�While�the�situation�is�not� expected� to� change� much� in� the� foreseeable� future,�business�development�activities�will�focus�on�introduction�of�new�products�to�augment�sales.

OPPORTUNITIES

Growth�in�the�automotive�industry�is�expected�to�be�marginally�higher� in� the� year� 2014-15.� � While� there� is� optimism� in� the�industry,�it�is�expected�that�for�this�optimism�to�translate�into�meaningful�and�sustainable�growth,�it�will�take�at�least�a�year.� �The� Company� is� well� positioned� to� exploit� business�opportunities�as�and�when�demand�for�workshop�equipment�pick�up.�

THREATS

Fluctuating�fuel�prices�combined�with�rise�in�inflation�will�have�an�adverse�impact�on�the�growth�of�the�automobile�industry�in�India.� This� will� result� in� postponement� of� � purchases� and�vehicle�repairs,�which�in�turn�will�affect�the�business�prospects.

OVERALL�PERSPECTIVES

The�global�economic�performance�and�particularly�the�Indian�economic�situation�for�2014-15�is�expected�to�improve�as�the�year� progresses.� Recoveries� are� anticipated� in� the� world's�advanced�economies.�The�monetary�policies�adopted�by�the�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

central� banks� in� these� economies� are� expected� to� provide�stimulus�to�support�the�consolidation.

Market�expectations� factor�accelerated�growth� in� India�with�stable�Government�in�power.�While�the�Company�is�optimistic�,�significant�changes�can�be�expected�only�in�the�latter�half�of�the�year.

The� share� of� international� business� is� expected� to� grow�substantially�in�the�next�year�as�the�products�are�well�accepted�across� the� markets� with� reference� installations� functioning�extremely�well.

Construction� at� the� green� field� site� for� the� modernized�compressor�plant�is�at�the�final�stages�and�the�shift�to�the�new�facility�is�likely�to�be�completed�in�the�second�quarter�of�2014-15.

HUMAN�RESOURCE�DEVELOPMENT

"ELGI� Values"� related� work� kept� us� busy� through� the� year;�communication�workshops,�recognition�methods,�discussion�forums� and� the� identification� of� 'behaviours'� and� 'non-behaviours'.

We�successfully�deployed�our�first�batch�of�trained�workmen�at�our�newly�built�foundry,�which�went�live�during�the�year.

We�have�put�in�place�a�mechanism�to�identify�internal�talent,�and�grow�them.�This�will�be�the�theme�for�the�future,�gradually�reducing�lateral�recruitments�to�the�minimum.

12

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Directors'�ReportDear�Shareholders,

Your�Directors�are�pleased�to�present�the�54th�Annual�Report�of�the�Company�along�with�the�audited�accounts�for�the�year�ended�31st�March�2014.

Financial�results�

The�highlights�of�the�performance�of�your�Company�during�the�fiscal��are�given�hereunder;� � �������������������������������(`. In�Million)

Particulars� � 2013-14� 2012-13

Profit�before�Depreciation�&�Tax�� � 1266.20� 1113.37

Less:�Depreciation� � 177.60� 142.70

Profit�before�Tax��� � 1088.60� 970.67

Less:�Provision�for�Tax�(Net�of�Deferred�Tax)� � 305.95� 258.03

Net�Profit��� � 782.65� 712.64

Add:�Opening�Balance�in�P&L�Account� � 2625.57� 2169.61

Amount�available�for�Appropriations� � 3408.22� 2882.25

The�Directors�recommend�the�following�Appropriations� �

Dividend�� � 158.45� 158.45

Dividend�Tax�� � 26.93� 26.93

Transfer�to�General�Reserve� � 78.30� 71.30

Profit�carried�forward� � 3144.54� 2625.57����������

Dividend

For� the� financial� year� 2013-14,� the� Board� of� Directors� had�recommended�dividend�of� �Re.�1/-�per�share�(100�%)�on�the�paid�up�share�capital�of�̀ .15,84,54,508.�Subject�to�the�approval�of�shareholders,�an�amount�of�`.185.38�Million�will�be�paid�as�dividend�including�Dividend�Distribution�Tax� � (previous�year��`.185.38�Million).�

Review�of�Operations

The�company�ended�with�net�sales�of��̀ .�8283�million�as�against��`.� 8165� million� in� 2012-13.� The� details� of� division� wise�performance� and� other� operational� details� are� discussed� at�length�in�the�Management�Discussion�and�Analysis.�

Subsidiary�Companies

The�Government� of� India� vide� its� Circular�No.� 2/2011� dated�08/02/2011�granted�general�exemption�under�Section�212(8)�of�the�Companies�Act,�1956,�from�attaching�the�Balance�Sheet�and� Profit� &� Loss� Account� and� other� documents� of� its�subsidiaries� and� hence� the� same� have� not� been� attached.�However�the�Financial�Statements�of��ATS��Elgi�Limited,�one�of�the�subsidiaries,�is�furnished�with�this�report.

As� required� under� the� Listing� Agreement� with� the� Stock�Exchanges,� a� Consolidated� Financial� Statement� of� the�Company�and�all�its�subsidiaries�is�attached.��The�Consolidated�Financial�Statements�have�been�prepared�in�accordance�with�the� relevant� Accounting� Standards� as� prescribed� under�Section� 211(3C)of� the� Companies� Act,� 1956.� A� Statement�containing�brief�financial�details�of�the�Company's�subsidiaries�for� the� financial� year� ended� March,� 2014� is� included� in� the�Annual�Report.

The� annual� accounts� of� the� subsidiaries� and� their� related�detailed�information�will�be�made�available�to�any�member�of�the�Company/its�subsidiaries�seeking�such�information�at�any�point� of� time� and� are� also� available� for� inspection� by� any�member� of� the� Company/� its� subsidiaries� at� the� registered�office�of�the�Company.

Future�Plans

a.� Domestic�

The� regime� change� in� the� Government� at� the� centre,� has�improved� market� sentiments.� Investments� by� business� are�expected�to�improve�in�the�coming�days,�leading�to�increased�

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demand� for� the� Company's� products� in� the� coming� years.�Global� Economic� indicators� are� also� showing� progress,� and�economic�recovery�is�visible�in�certain�high�income�economies.�The�Company�expects�a�positive�growth� in�Exports� that�will�help�augment�sales.

b.� International

Gaining�significant�market�share�in�developed�market�requires�substantial�effort�nevertheless,�the�Company�visualises�strong�growth� in� international�business�as� the�Companyʼs� range�of�products�has�been�well� received� in� the�global�markets.� This�positive�momentum�is�likely�to�continue�in�the�future.

Capital�Expenditure�and�funding�

The�Capital� Expenditure� incurred�and� funded� for� the�year� is�`.�917.23�Million,�of�which�̀ .�584.30�Million�pertain�to�plant�and�machinery�through�internal�accruals.

Shareholder�initiatives

1.� Your�company�adheres�strictly�to�all�the�statutory�and�other�legal�compliances.

2.� Your�company�has�in�place�regulations�for�preventing�and�regulating� insider� trading� and�has� adhered� to� a� code�of�conduct�and�business�ethics�by�which�the�shareholder� is�treated� at� par� with� an� employee� on� availability� of�information�about�the�company.

3.� Your� company� regularly� intimates� the� shareholders�(through�quarterly�newsletters)�on�the�performance�of�the�company,�even�though�it�is�not�mandatory;

4.� Your�company�has�consistently�paid�dividend�throughout�these�years.

5.� Your�company�has�been�prompt�and�regular�in�its�replies�to�your�queries�received�by�them.

6.� Your�company�also�replies�within�the�stipulated�time�to�all�legal�and�statutory�authorities.�

7.� The� custodial� charges� and� listing� fees� promptly� paid� by�your�company�to�the�depositories�and�stock�exchanges.

8.� During�this�year,�the�Company�dematted�4,31,487�shares.�With�this,�the�total�numbers�of�shares�dematted�as�on�31st�March� 2014� are� 15,46,15,595� Shares� which� represent�97.58%�of�the�shares�of�the�Company.��

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Directors:

Sudarsan� Varadaraj,� Director� of� the� Company� retires� at� the�ensuing� Annual� General� Meeting� and� being� eligible� offers�himself�for�re-appointment.�Dr.�Ganesh�Devaraj�retires�at�the�ensuing� Annual� General� Meeting� and� the� Directors� have�proposed�to�appoint�him�as�Independent�Director.

M.� Ram� Prasad,� B.� Vijayakumar� and� N.� Mohan� Nambiar� are�being�appointed�as� Independent�Directors�for�5�consecutive�years�as�per�the�provisions�of�Section�149�of�the�Companies�Act,�2013.�

Your� Directors� recommend� their� appointment� /� re-appointment

Directors'�Responsibility�Statement

The�Board�of�Directors�confirmi.� that� in� the� preparation� of� the� annual� accounts,� the�

applicable�accounting�standards�had�been�followed�along�with�proper�explanation�relating�to�material�departures;

ii.� that� the� directors� had� selected� such� accounting� policies�and�applied�them�consistently�and�made�judgments�and�estimate�that�are�reasonable�and�prudent�so�as�to�give�a�true�and�fair�view�of�the�state�of�affairs�of�the�company�at��the�end�of�the�financial�year�and�of�the�profit�or�loss�of�the�company�for�that�period;

iii.� that�the�directors�had�taken�proper�and�sufficient�care�for�the� maintenance� of� adequate� accounting� records� in�accordance�with�the�provisions�of�this�Act�for�safeguarding�the� assets� of� the� Company� and� for� preventing� and�detecting�fraud�and�other�irregularities.

iv.� that�the�Directors�had�prepared�the�annual�accounts�on�a�going�concern�basis.

Statutory�Auditors�and�their�appointment

M/s.RJC� Associates,� Chartered� Accountants,� the� Statutory�Auditors�of�the�Company�retire�at�the�ensuing�Annual�General�Meeting� of� the� Company.� � Your� Board� � recommends� their�reappointment�as�the�Statutory�Auditors�of�the�Company�for�a�term�of�three�years.

Cost�Audit

Dr.�G.L.�Sankaran,�Cost�Accountant�has�been�appointed�as�Cost�Auditor�for�the�financial�year�2013-14.�Cost�Audit�report�for�the�year�ended�31-03-2013�has�been�filed�on�13-09-2013.

14

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Human�Resources�and�Industrial�Relations

The�Company�continues�to�enjoy�the�cordial�relationship�with�its�employees�at�all�levels.� �The�total�strength�of�employees�as�on�31st�March,�2014��was�2033.

Other�Information

The� statement� showing� the� particulars� of� technology�absorption�pursuant�to�section�217(1)(e)�of�the�Companies�Act,�1956,� read� with� Companies� (Disclosure� of� Particulars� in� the�Report� of� Board� of� Directors)Rules,� 1988,� is� given� in� the�annexure�forming�part�of�this�report.

The� statement� showing� the� particulars� of� names� and� other�particulars�of�employees� �pursuant�to�section�217(2A)�of�the�Companies� Act,� 1956,� read� with� Companies� (Particulars� of�Employees)�Rules,�1975,�is�given�in�the�annexure�forming�part�of�this�report.

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

� � � � � � � � � � � � � �������������For�and�on�behalf�of�the�Board

Place� :� �Coimbatore� � � � � � JAIRAM�VARADARAJ� � N.�MOHAN�NAMBIARDate� :� 29/05/2014�� � � � � � Managing�Director�� � Director��������������������������

15

Corporate�Governance

A��Report�on�Corporate�Governance�together�with�a�Practicing�Company� Secretary's� Certificate� on� Compliance� with� the�conditions� of� Corporate� Governance� as� stipulated� under�Clause�49�of�the�Listing�Agreement�is�provided�elsewhere�in�the�Annual�Report.

Acknowledgements

Your�Directors�take�this�opportunity�to�place�on�record�their�appreciation�on�dedication�and�commitment�of�employees�at�all� levels� in� maintaining� the� sustained� growth� of� your�Company.��Your�Directors�thank�and�express�their�gratitude�for�the� support� and� co-operation� received� from� Governments,�stakeholders�including�analysts,�producers,�vendors,�financial�institutions,�banks,�investors,�service�providers..

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ANNEXURE�TO�THE�DIRECTORS'�REPORTI.� STATEMENT� CONTAINING� PARTICULARS� PURSUANT� TO�

SECTION�217(1)(e)�OF� THE�COMPANIES�ACT� 1956�READ�WITH�THE�COMPANIES�(DISCLOSURE�OF�PARTICULARS�IN�THE�REPORT�OF�BOARD�OF�DIRECTORS)�RULES,�1988�AND�FORMING�PART�OF�THE�DIRECTORS'�REPORT.

A.� Energy�Conservation�/�Cost�saving�Activities�carried�out��for�the�year�2013�-14

The� Company� believes� in� optimizing� energy� needs� and�constantly�endeavours� to� reduce�electricity� consumption.� In�that�effort,�the�Company�has�achieved�the�following�progress�during�the�year�2013-14.

1.� Initiated�“�Energy�Management�System”�ISO�50001�:�2011�Certification�Process� �to�confirm�the�energy�efficiency�for�each�Manufacturing�Process�and�formulated�the�“�Energy�Policy”�in-line�with�said�Standards.

2.� The�Company��is�certified�for�ISO�14001:2004�Standards�and�during� the� year� executed� “Environment� Management��Programme”�for�the�various�manufacturing�process�and�in�that�regard,�as�a�first�effort,�reused�the�wood�for�different�applications.�

3.� Introduced�HT�Compressor�Testing�with�soft�starter�which�requires� optimum� level� of� Maximum� demand� by�introducing�900�KW�VFD�with�2.5�MW�Transformer�for�both�50�and�60�Hz�with�various�HT�Voltages�(�specially�designed�for�HT�application).

4.� Enhanced�the�Maximum�Demand�from�1.5�MW�to�2.1�MW,�which�reduced�the�High�Speed�Diesel�oil�consumption�by�40%

5.� Introduced� the� movement� sensors� with� LED� lights� and�exhaust�fans�to�optimize�energy�consumption.

����������

6.� Introduced�“Artic�master”�for�Package�Air�Conditioners�to�optimize� energy� consumption� and� were� � able� to� save�Energy�by�15.2%.�

�������������������Overall,�the�various�energy�conservation�projects�executed�as�above�saved�power�cost�for�the�year�2013-14�to�the�tune�of���Rs�14.5�Million.

B.�� Technology�Absorption1.� Research�&�Development�1.� Air� cooled� version� of� oil-free-screw-compressors� in� the�

power�range�of�135�kW�to�170�kW�designed,�developed�and�released�for�commercial�production.

2.� Water-cooled�oil-free�compressors� in�the�power�range�of�90kW�to�300kW�for�the�US�market�designed,�developed�and�released�for�commercial�production.

3.� Single� stage� Airend� Axis-146R,� suitable� for� direct� drive�

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

engine�applications��in�the�power�range�of�11�kW�to�37�kW�designed,� developed� and� released� for� commercial�production.�

4.� Dual�Pressure�diesel�powered�Screw�Compressor�for�water-well� drilling� designed,� developed� and� released� for�production.� This� model� is� optimized� for� performance� at�various� depths� and� start� conditions� in� water� well�applications.

5.� Oil-free� Reciprocating� compressors� of� � 40HP� and� 50HP�capacity��designed,�developed�and�released�for�commercial�production.

2.� �Technology�absorption,�adaptation�and�innovation

1.� EG� series� (Aircooled)� low-pressure�Screw�Compressors� in�the�power�range�of�90kW�to�160kW��designed�,�developed�and� launched�specifically� in� the� India,�China�&�European�markets.

2.� Developed� Oil-free� Compressor� for� Railway� Electric�locomotive�and�received�approval�from�Indian�Railways�for�the�same.

3.� Air�Compressor�for�the�project�"Medha�energy�saving�APU�for�Indian�Railways"�has�entered�serial�production.

4.� EN� series� in� the� power� range� of� 15kW� to� 45kW� Screw�Compressors�designed�and�launched�globally�covering�the�markets�of�India,�Europe,�China,�US,�Brazil,�Saudi�Arabia� �in�the�first�phase.

5.� EG� series� (Aircooled)� Screw� Compressors� in� the� power�range� of� � 90kW� to� 160kW� designed� ,� developed� and�launched�specifically�in�the�US�&�Brazil�markets.

6.� EN� series� in� the� power� range� of� 2.2kW� to� 15kW� Screw�Compressors�launched��in�the�European�market.

7.� EG�series�(Water�Cooled)�Screw�Compressors�in�the�power�range� of� 90kW� to� 160kW� � designed� ,� developed� and�launched��in�the�US�market.

8.� EG�series��55kW�Air�Cooled�Compressors�launched�in�India,�Europe�&�China�markets.

EXPENDITURE�ON�R�&�D� � � (`.�In�Million)

� � � � � � � � 2013-2014� 2012-2013

Capital� � � � � � 9.32� 19.66���� � �������������������Revenue� � � � � � 234.67� 244.73Total� � ������ � � � � 243.99� 264.39�R�&�D�Expenditure�as�a�� � �percentage�of�Turnover� 2.97%� 3.25%� � � � � � ����

C.� Foreign�Exchange�Earnings�and�outgo:� Particulars�are�given�in�the�notes�forming�part�of�accounts.�

Kindly�refer�the�same.

16

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Name Age Designation Remuneration�(`.�In��Million)

Qualification Experience Date�ofJoining

PreviousEmployment

Jairam�Varadaraj 52 ManagingDirector

9.59 B.Com.,�MBA.,Phd(USA)

25 29/05/1992 NIL

V.T.�Govindarajan 55 Executive�DirectorISAMME�&�EUROPE

7.18 B.E.,�PGDBM 32 03/01/2007 Rane�TRWSteering�System�Ltd.

II�.��STATEMENT�ANNEXED�TO�DIRECTORS'�REPORT�SHOWING�THE�NAMES�AND�OTHER�PARTICULARS�OF�EVERY�EMPLOYEE�OF�THE�COMPANY�PURSUANT�TO�SECTION�217(2A)�OF�THE�COMPANIES�ACT,�1956,�READ�WITH�THE�COMPANIES�(PARTICULARS�OF�EMPLOYEE)�RULES�1975.

*��Remuneration�for�part�of�the�Financial�Year�2013-14.

Notes�:�

1.� The�nature�of�employment�of��Jairam�Varadaraj,�Managing�Director�of�the�Company�is�contractual.�

2.�� Remuneration�includes�salary,�allowances,�contribution�to�Provident�Fund�and�other�taxable�perquisites�and�also�performance�linked�pay�paid�during�year.

3.� Jairam�Varadaraj�is�related�to�Sudarsan�Varadaraj�as�per�definition�of�relative�in�the�Companies�Act�2013.�

JayashankarJayaraman

52 Director�-�HR 6.57 BA,�LLB,�PGDPM

26 02/11/2009 WatanmalGroup

�S.�Sriram 55 Chief�FinancialOfficer

6.10 B.Sc.,�FCA,FCMA,�CISA.

31 11/07/2007 Cholayil�Pvt.Ltd.

Rajendra�Singh

55 Director�Technology

8.06 B.E..,�MS., 37 22/09/2010 Indian�RailwaysDelphi�-�TVSContinentalAutomotive

K.�Chandran 55 DirectorCorporate�-�Strategy�&�AMEROPA

0.66* B.Tech.,�(Mechanical)PGD(Marketing)

30 07/07/2011 HCLTechnologies

Harjeet�SinghWahan

65 Executive�Director�-�Quality�&�EBS

7.61 B.E.,�(Elec)DBM

40 14/05/2012 ATS�ElgiLtd.

K.�SreeramachandraMurthy

47 Director�-�Operations

6.51 M.E.,�(Tools)PG�Diploma(Finance�&�Marketing)

25 10/11/2010 HindustanMotors�Ltd.

� � � � � � � � � � � � � �������������For�and�on�behalf�of�the�Board

Place� :� �Coimbatore�� � � � � � JAIRAM�VARADARAJ� � N.�MOHAN�NAMBIARDate� :�� 29/05/2014� � � � � � � Managing�Director�� � Director��������������������������

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Report�on�Corporate�Governance

COMPANY'S�PHILOSOPHY�ON�CODE�OF�GOVERNANCE

Elgi�has�always�believed�in�and�followed�best�business�practices,�and�has�been�compliant�with�all�the�laws,�exercised�fairness�and�integrity�in�all�its�dealings,�thereby�reiterated�its�commitment�to�enhancement�of�stakeholders'�value.�The�company�has�a�defined�set�of�guidelines�for�its�internal�governance�based�on�business�ethics,�legal�compliance�and�professional�conduct.�The�company�has�been�following�transparency�in�its�accounting�practices�and�procedures,�in�framing�and�adhering�to�policies�and�guidelines,�in�insisting�on�responsibility�and�accountability�by�regular�audit�of�its�policies�and�procedures;

BOARD�OF�DIRECTORS

The�Board�of�Directors�of�the�Company�consists�of�7�Directors,�out�of�which�4�are�Independent�Directors.�Jairam�Varadaraj� is�the�Executive�Director�and�all�other�Directors�are�Non-Executive�Directors.���

The�Board�met�4�times�during�the�Financial�Year�on�09th�May��2013,�1st��August��2013,��11th�November��2013�and�06th�February,�2014.�The�composition�and�attendance�of�Directors�at�the�Board�Meetings�and�the�Annual�General�Meeting�held�during�the�years�is�as�under:-

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Jairam�Varadaraj� Managing�Director�-�Promoter� 4� Yes� 8� -� � 4

Sudarsan�Varadaraj� Non-Executive�-�Promoter� -� No� 7� 1� � 2

Dr.�T.�Balaji�Naidu� Non-Executive� 4� Yes� 2� -� � 1

B.�Vijayakumar� Non-Executive�-�Independent�� 3� Yes� 9� -� � 3

N.�Mohan�Nambiar� Non-Executive-�Independent� 4� Yes� 2� 1� � 1

M.�Ramprasad� Non-Executive-�Independent� 4� Yes� 1� 1� � -

Dr.�Ganesh�Devaraj� Non-Executive-�Independent� 3� Yes� -� -� � 1

Name�of�the�Director� Category� Attendance� No.�of�� No.�of�Committee� � � Particulars� Directorships� Positions�held�in� � � � in�other�Public� all�Companies� � � � Companies� $� � � � #� � � Board� Last� Chairman� Member� � � Meeting� AGM�� � � Board� Last� Chairman� Member� � � Meeting� AGM�

�#��Excludes�directorships�in�Private�Companies�and�Foreign�Companies

�$�Only�Audit�Committee�and�Investor�Grievance�Committee�are�considered.

Jairam�Varadaraj,�Managing�Director�and��Sudarsan�Varadaraj,�Director�are�related�to�each�other.�None�of�the�other�Directors�are�related.

As�per�the�disclosures�received�from�the�Directors,�none�of�the�Directors�serve�as�member�of�more�than�10�committees�nor�they�are�the�chairman�/�chairperson�of�more�than�5�committees�,�as�per�the�requirements�of�the�listing�agreement.

COMMITTEES�OF�THE�BOARDThe�Board�at�present�have�4�Committees�:�

1)� Audit� Committee,� 2),� Nomination� and� Remuneration� Committee� (Erstwhile� Remuneration� Committee),� 3)� Stake� Holders�Relationship�Committee�(Erstwhile�Shareholders�/�Investors�Grievance�Committee),�4)�Corporate�Social�Responsibility�Committee.

The�Board�constitutes�the�committees�and�defines�their�terms�of�reference.�The�members�of�the�committees�are�co-opted�by�the�Board.�

AUDIT�COMMITTEE

All�the�members�of�the�Audit�Committee�are�independent�and�have�knowledge�of�finance,�accounts�and�engineering�industry.�The�quorum�for�Audit�Committee�meeting�is�minimum�of�two�Independent�Directors.�

The�role,�powers�and�functions�of�the�Audit�Committee�are�as�per�section�292A�of�the�Companies�Act,�1956�and�the�guidelines�set�out�in�the�listing�agreement�with�the�Stock�Exchanges.��The�terms�of�reference�of�this�Committee�are�as�required�by�SEBI�-�under�clause�49�of�the�Listing�Agreement.� �Besides�having�access�to�all�the�required�information�from�within�the�Company,�the�Committee�can�obtain�external�professional�advice�whenever�required.�The�Committee�acts�as�a�link�between�the�Statutory�and�Internal�Auditors�and�the�Board�of�Directors�of�the�Company.��It�is�authorized�to�select�and�establish�accounting�policies,�review�reports�of�the�Statutory�and�the�Internal�Auditors�and�meet�with�them�to�discuss�their�findings,�suggestions,�and�other�related�matters.�The�Committee�is�empowered�to�recommend�the�appointment�and�remuneration�payable�to�the�Statutory�Auditors.

18

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19

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

During�the�year�under�review,�the�Committee�met�four�times�on�09th�May� �2013,�1st� �August� �2013,�11th�November�2013�and�6th�February��2014.�The�composition�of�the�Audit�Committee�and�the�attendance�of�each�member�of�the�Committee�is�given�below.�

� Name�of�the�Members� Category� �����No.�of�Meetings�held�� ���No.�of�Meetings�attended� � � during�the�year� ��

� M.�Ramprasad�(Chairman)� Independent�-�Non-Executive� 4� 4� N.�Mohan�Nambiar�(Member)� Independent�-�Non-Executive� 4� 4�� Dr.�Ganesh�Devaraj�(Member)�� Independent�-�Non-Executive� 4� 3

The�Company�Secretary�acts�as�the�Secretary�to�the�Committee.�The�Managing�Director,�Statutory�Auditors�and�Internal�Auditor�and�Chief�Financial�Officer��of�the�Company�have�also�attended�the�committee�meetings.��The�minutes�of�the�Audit�Committee�meetings�were�circulated�to�the�Board,�where�it�was�discussed�and�taken�note�of.�The�Audit�Committee�considered�and�reviewed�the�accounts�for�the�year�2013-14,�before�it�was�placed�in�the�Board.�The�Board�of�Directors�of�the�Company�at�their�meeting�held�on�29th�May�2014,�have�revised�the�terms�of�reference�of�the�Audit�Committee� in� conformity� with� the� provisions� of� Section� 177� of� the� Companies� Act,� 2013� and� revised� Clause� 49� of� the� Listing�Agreement.�

REMUNERATION�COMMITTEE

The�Committee�comprises�of�the�following�Directors�as�its�Members

� Name�of�the�Member� Chairman�/�Member� �Category��� � �� M.�Ramprasad� Chairman� Independent�-�Non-Executive� N.�Mohan�Nambiar� Member� Independent�-�Non-Executive� Dr.�Ganesh�Devaraj� Member� Independent�-�Non-Executive���

This�Committee�would�basically�look�into�and�determine�the�Company's�policy�on�remuneration�packages�to�the�Executive��Directors.��During�the�year�under�review,�the�committee�had�met�once�on�1st�August�2013.��All�the�members�of�the�committee�were�present�in�the�meeting.

The� Executive� Directors� are� paid� remuneration� approved� by� the� Board� of� Directors� on� the� recommendation� of� Remuneration�Committee.�The�remuneration�so�approved�is�subject�to�the�approval�by�the�shareholders�at�the�general�meeting�and�such�other�authorities�as�the�case�may�be.

The�Board�of�Directors�of�the�Company�at�their�meeting�held�on�29th�May�2014,�have�renamed�its�Remuneration�Committee�as�“Nomination�and�Remuneration�Committee”�and�have�also�revised�the�terms�of�reference�of�the�said�Committee�in�conformity�with�the�applicable�provisions�of�Section�178�of�the�Companies�Act,�2013�read�with�the�amended�Clause�49�of�the�Listing�Agreement.�

DETAILS�OF�REMUNERATION�

Managing�Director

The�Company� ʻs� Board� at� present� comprises� one� Executive�Director,� Jairam�Varadaraj� -�Manaing�Director.� The� remuneration� of�Managing�Director�is�governed�by�a�special�resolution�which�have�been�approved�by�the�Board�of�Director�and�the�shareholders.�The�remuneration�broadly�comprises�fixed�and�variable�components.�The�increment�of�the�Managing�Director�is�determined�on�the�basis�of� the� Companies� performance� and� individual� contribution.� The�Managing�Director� is� not� entitled� to� sitting� fees� for� attending�meetings�of�the�Board�and�Committees.�Non-Executive�Directors

In�view�of�the�various�provisions�of�the�Companies�Act,�2013�and�revised�Clause�49�of�the�Listing�Agreement,�the�Company�is�in�the�process�of�formulating�various�policies�for�evaluation�of�Director,�including�Independent�Directors,�criteria�for�selection�of�Directors,�remuneration�of�Directors�and�also�adhering�to�other�statutory�disclosures.��The�initiative�would�be�implemented�in�FY�2014-15.��Details�of�remuneration�paid�to�the�Directors�for�the�year�ended�31st�March�2014�as�follows:

� Name� Designation� �����Total�Remuneration� ���Period�of� � � (In�`.)� Appointment���

� �Jairam�Varadaraj� Managing�Director� 9.59�Million� 5�years�with�effect� � � � from�01-04-2011

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

20

The�Company�does�not�pay�remuneration�to�any�of�its�Non-Executive�Directors�except�sitting�fees�for�attending�the�Board/Committee�Meeting(s)..�

The�details�of�sitting�fees�paid�during�the�year�ended�31st�March�2014�to�the�Non-Executive�Directors�are�as�under:

� Name�of�the�Director� � � � Sitting�Fees� � � � � � � (In�̀ .)

� N.�Mohan�Nambiar�������� � � � 160000� M.�Ramprasad�� � � � 160000� Dr.�Ganesh�Devaraj� � � � 120000� B.�Vijayakumar�� � � � 60000� Dr.�T.�Balaji�Naidu��������������� � � 80000� Sudarsan�Varadaraj� � � � -

Statement�showing�number�of�Equity�Shares�held�by�the�Non-Executive�Directors�as�on�31st�March�2014:-

� Name�of�the�Director� � � No�of�Shares�held�(as�on�31.03.2014)

� M.�Ramprasad������� � � � �8000� B.�Vijayakumar�� � � � 50000� Dr.�T.��Balaji�Naidu������������������������ � � 31000� Sudarsan�Varadaraj� � � � 41786

There�has�been�no�materially�relevant�pecuniary�transaction�or�relationship�between�the�Company�and�its�Non-Executive�Independent�Directors�during�the�year.

SHARE�HOLDERS'�COMMITTEE

The�Committee�comprises�of�the�following�Directors�as�its�Members

� ��� Name�of�the�Members� Category� �����No.�of�Meetings�held�� ���No.�of�Meetings�� � � during�the�year� attended

�� N.�Mohan�Nambiar�(Chairman)� Independent�-�Non-Executive� 32� 32� Jairam�Varadaraj�(Member)� Executive�Managing�Director�-�Promoter� 32� 32�� Dr.�T.�Balaji�Naidu�(Member)� Non-Executive� � 32� 32

Compliance�Officer:�S.Sriram�‒�Chief�Financial�Officer.

Consequent�to�the�resignation�of��Syam�Kumar,�Company�Secretary,�with�effect�from�1st�June�2014,��S.�Sriram,�Chief�Financial�Officer�was�appointed�as�Compliance�Officer�of�the�Company�at�the�Board�Meeting�held�on�29/05/2014.�

The� Committee� deals� in� matters� relating� to� transfer� and� transmission� of� shares,� issue� of� duplicate� share� certificates,� review� of�dematerialized� shares,� redressing�of� investors� complaints� such�as�non-receipt�of� shares,�non-receipt�of�dividends�etc.� and�other�matters�related�to�shares.�

The�Share�Transfers/transmissions�approved�by�the�committee�are�placed�at�the�Board�Meetings�from�time�to�time.�

The�total�number�of�complaints�received�and�replied�to�the�satisfaction�of�shareholders�during�the�year�ended�on�31st�March�2014�was�19.�There�was�no�outstanding�complaints�as�on�31stMarch�2014.

The�Board�of�Directors�of�the�Company�at�their�meeting�held�on�29th�May�2014,�have�renamed�its�Shareholders'/Investors'�Grievance�Committee� as� “Stakeholders� Relationship� Committee”� and� have� also� revised� the� terms� of� reference� of� the� said� Committee� in�conformity�with�the�applicable�provisions�of�Section�178�of�the�Companies�Act,�2013�and�amended�Clause�49�of�the�Listing�Agreement.

CORPORATE�SOCIAL�RESPONSIBILITY�(CSR)�COMMITTEE

The�Committee�comprises�three�members�Jairam�Varadaraj,�B.�Vijaya�Kumar�and�Dr.�T.�Balaji�Naidu.

The�terms�of�reference�of�this�Committee,��assigned�by�their�Board��encompasses�:

a.� To�formulate�and�recomend�to�the�Board,�a�CSR�policy�which�shall�indicate�the�activities�to�be�undertaken�by�the�Company�as�specified�in�schedule�VII�:

b.�� To�recomend�the�amount�of�expenditure�to�be�incurred�on�the�activities�referred�to�in�clause�A:

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c.�� To�monitor�the�CSR�policy�of�the�Company�from�time�to�time�:

d.�� Any�other�matter�that�may�be�referred�by�the�Board�from�time�to�time�or�as�may�be�necessary�for�compliance�with�the�Companies�Act,�2013�or�Rules�made�thereunder�or�any�other�statutory�laws�of�India:

MANAGEMENT�DISCUSSION�AND�ANALYSIS

Management�Discussion�and�Analysis�forms�part�of�this�Annual�Report.

GENERAL�BODY�MEETINGS

Location�and�time�for�last�three�AGMs�held�and�the�special�resolutions,�if�any,�passed�thereat,�are�as�given�below:

�� Year� Date�of�Meeting� Time�of�Meeting� Location� ��Special�Resolutions�Passed� � � � � ������������������������������if�any�����

� 2012-13� 01-08-2013� 04.30�pm� ARDRA�No.�9,�North�Huzur�Road� �������������������������-NIL-� � � � Coimbatore�-�641�018.

� 2011-12� 06-08-2012� 04.30�pm� ARDRA�No.�9,�North�Huzur�Road� �������������������������-NIL-� � � � Coimbatore�-�641�018.

� 2010-11� 29-07-2011� 04.30�pm� ARDRA�No.�9,�North�Huzur�Road� Re-appointment�of��Mr.�Jairam� � � � Coimbatore�-�641�018.� Varadaraj�as�Managing��� � � � � Director�for��a�further�period� � � � � of�5�years��w.e.f.�01-04-2011

POSTAL�BALLOT:

No�special�resolutions�were�put�through�postal�ballot�last�year.�As�required�under�Clause35B�of�listing�agreement,�the�Company�has�proposed�e-voting�/�Postal�Ballot�(In�lieu�of�e-voting)�in�respect�of�all�share�holders�resolution�to�be�passed�at�the�ensuing�Annual�General�Meeting.

DISCLOSURES:

(i)� Disclosures�on�materially�significant�related�party�transactions�that�may�have�potential�conflict�with�the�interest�of�the�Company�at�large

� Kindly�refer�to�the�notes�forming�part�of�accounts�for�the�details�of�related�party�transactions.��There�are�no�materially�significant�Related�Party�Transactions,�which�have�potential�conflict�with�the�interest�of�the�Company�at�large.

(ii)� Details�of�non-compliance�by�the�Company,�penalties,�strictures�imposed�on�the�Company�by�Stock�Exchanges�or�SEBI�or�any�Statutory�Authorities,�on�any�matter�relating�to�capital�markets,�during�the�last�three�years.

� The�Company�has�complied�with�all�the�requirements�of�the�Listing�Agreement�of�the�Stock�Exchanges�as�well�as�regulations�and�guidelines�of�SEBI.��No�Penalties�have�been�levied�or�strictures�have�been�passed�by�SEBI,�Stock�Exchanges�or�any�other�Statutory�Authority�on�matters�relating�to�capital�markets,�in�the�last�three�years.

(iii)� Whistle�Blower�policy�and�affirmation�that�no�personnel�has�been�denied�access�to�the�Audit�Committee

� The�Company�conducts�regular�'employee�meets'�every�quarter�where�all�the�employees�have�a�chance�to�interact�directly�with�the�Managing�Director�of�the�Company.�Besides�this�the�Managing�Director� is�reachable�via�e-mail�and�landline.�Any�issue�brought�to�the�attention�of�the�management,�whether�resolved�or�not�is�placed�before�the�Audit�Committee�for�its�perusal�and�comments.

(iv)� Details�of�compliance�with�mandatory�requirements�and�adoption�of�the�non-mandatory�requirements�of�Clause�49�of�the�Listing�Agreement.

� The�Company�complies�with�all�the�requirements�of�the�Listing�Agreement�including�the�mandatory�requirements�of�Clause�49�of�the�agreement.��

� The�Company�has�adopted�the�following�non-mandatory�requirements�on�Corporate�Governance�recommended�under�Clause�49�of�the�Listing�Agreement.

� 1.�����Company�has�a�Remuneration�Committee�comprises�of�three�Non-Executive�Independent�Directors.

� 2.�����Quarterly�results�are�being�sent�to�all�the�members.

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

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CODE�OF�CONDUCT

The�Board�of�Directors�has�laid�down�a�code�of�conduct�for�all�Board�Members�and�Senior�Management�of�the�Company.��The�same�has�been�posted�on�the�website�of�the�Company.��All�Board�Members�and�Senior�Management�personnel�have�affirmed�their�compliance�with�the�code�of�conduct�for�the�year�under�review.

The�Company's�Managing�Director's�declaration�to�this�effect�forms�a�part�of�this�report.

CODE�FOR�PREVENTION�OF�INSIDER�TRADING

The� Company� has� framed� a� Code� of� Conduct� for� prevention� of� Insider� Trading� based� on� SEBI� (Prohibition� of� Insider� Trading)�Regulations,�1992.�This�code�is�applicable�to�all�Directors�/�officers�/�designated�employees.� �The�Code�ensures�the�prevention�of�dealing�in�shares�by�persons�having�access�to�unpublished�price�sensitive�information.

MEANS�OF�COMMUNICATION�

The�Quarterly�Results�and�Annual�Results�are�published�in�newspapers�viz.�Business�Line�(all�editions),�Financial�Express�(Western�edition)�and�Dhinamani�(Vernacular�paper)�and�simultaneously�posted�on�the�Company's�web�site�(www.elgi.com).

In�addition�to�this,�the�Company�has�the�practice�of�mailing�Quarterly�Results�to�the�Company's�members�and�the�members�are�also�kept�informed�about�important�developments�in�the�Company.��

The�presentations,�if�any,�made�to�Institutional�Investors�or�to�the�Analysts�are�also�posted�on�Company's�website.����

GENERAL�SHAREHOLDER�INFORMATION

th54 �Annual�General�Meeting

thDate�and�Time�� :�� 25 �September��2014�at��10.30�AMVenue� � :� ARDRA,�No.�9,�North�Huzur�Road,�Coimbatore�-�641�018.

FINANCIAL�CALENDAR

� � � � � �� Period�of�reporting� �� � � � Proposed�Board�meeting�dates��������

� Quarter�ending�30th�June�2014� � � � Last�week�of�July�2014� Quarter�ending�30th��September�2014� � � First�week�of��November��2014� Quarter�ending�31st�December�2014� � � First��week�of�February�2015� Year�ending�31st�March�2015� � � � Last�week�of�May�2015

st st� Financial�Year� :�1 �April�2014�to�31 ��March�2015

Date�of�Book�Closure�� :��10th�September�2014��to�25th�September�2014�(both�days�inclusive)

Dividend�Payment�Date�:�21/10/2014

Listing�of�shares�on�Stock�Exchanges� �

Bombay�Stock�Exchange�Limited�� � National�Stock�Exchange�of�India�Ltd� �Phiroze�Jeejeebhoy�Towers� � Exchange�Plaza,�5th�Floor,�Plot�No.�C/1�Dalal�Street,�Fort� � G'�Block,�Bandra-Kurla�Complex�Mumbai�-�400�001� � Bandra�(East),�Mumbai�-�400�051

22

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Page 25: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

Month� � NSE� � � BSE

� � HIGH� LOW� QTY� HIGH� LOW� QTY

APRIL� 80.00� 73.50� 35,994� 80.10� 73.55� 38,875

MAY� 89.40� 74.75� 2,08,053� 86.00� 75.00� 93,248

JUNE� 84.00� 73.80� 1,92,518� 84.00� 74.00� 3,97,646

JULY����������� 95.50� 76.05� 28,15,548� 95.60� 75.85� 29,02,314

AUGUST� 85.00� 76.70� 1,61,290� 86.00� 76.25� 67,335

SEPTEMBER� 80.50� 76.20� 1,09,674� 81.00� 76.50� 39,032

OCTOBER� 82.20� 77.65� 1,59,320� 82.50� 77.20� 46,043

NOVEMBER� 99.65� 79.70� 6,84,424� 90.00� 80.55� 1,03,230

DECEMBER� 89.00� 81.25� 7,66,724� 89.45� 81.50� 3,78,220

JANUARY�� 95.00� 83.60� 3,29,761� 95.00� 84.50� 1,23,107

FEBRUARY� 91.00� 86.45� 1,84,066� 90.00� 86.00� 66,180

MARCH� 109.40� 88.00� 9,28,448� 109.90� 88.00� 2,83,200

Total� � � 65,75,826� � � 45,38,430

Annual�listing�fees�for�the�year�2014-15�were�paid�to�BS�E�Limited�&�National�Stock�Exchange�of�India�Limited.�

STOCK�MARKET�DATA�

Type�of�Security:��Equity

Stock�Code:�BSE�Limited��:�522074National�Stock�Exchange�of�India�Limited��:��ELGIEQUIP

ISIN�number�allotted�for�equity�shares�:��INE�285A01027(Fully�paid�Re.�1/-�each)�

Stock�Price�Data:�For�the�Period:��April�2013�to�March�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

16000.00

17000.00

18000.00

19000.00

20000.00

21000.00

22000.00

23000.00

5060708090

100110120130140150

April�2013

May�2013

June�2013

July�2013

August�2013

Septem

ber�2013

October�2013

Novem

ber�2013

Decem

ber�2013

Janu

ary�2014

February�2014

March�2014

BSE�SE

NSEX

MONTH

ELGI�SHARE�PRICE�vs�BSE�SENSEX

SHAR

E�PRI

CE�(IN�

`.)

23

Page 26: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

Registrar�and�Share�Transfer�Agents� ���(for�both�physical�and�demat�segments)���������

Head�Office�� Branch:Link�Intime�India�Private�Ltd� Link�Intime�India�Private�LtdC-13,Pannalal�Silk�Mills�Compound� Coimbatore�BranchL.B.S.Marg,�Bhandup�(west)� "Surya",�35,�May�Flower�Avenue,�(II�Floor)Mumbai�400�078������������������������������������������������������������� Behind�Senthil�Nagar,�Sowripalayam�Road,Tel:�022-25963838��� Coimbatore�641028�������� Tel:�91-0422-2314792�&�2315792��������������������������������������������������������������������������������������� Fax:�91-0422-2314792Fax:�022-25946969� E-mail:�[email protected]�:�[email protected]

Details�of��Compliance��Officer�:

Mr.�S.�SriramChief�Financial�OfficerElgi�Equipments�LtdElgi�Industrial�ComplexTrichy�Road,�SinganallurCoimbatore�-�641005e-mail�:�[email protected]:�91-�422-�2589136,�2589187Fax�:�91-422-2573697��In�order�to�facilitate�investor�servicing,�the�Company�has�designated�an�e-mail-id:�[email protected]�mainly�for�registering�complaints�by�investors.

Share�Transfer�System�The�Company's�shares�being� in�compulsory�dematerialised�(demat)� list�are�transferable�through�the�depository�system.�Shares� in�physical�form�are�processed�by�the�Registrar�and�Share�Transfer�Agent,�Link�Intime�India�Private�Limited�and�approved�by�the�Share�holder�and�Investor�Grievance�Committee�of�the�Company.�The�Share�transfers�are�processed�within�a�period�of�15�days�from�the�date�of�receipt�of�the�transfer�documents�by�Link�Intime�India�Private�Limited,�if�the�documents�are�complete�in�all�respects.� �All�requests�for�dematerialization�of�shares�are�processed�and�confirmed�to�the�depositories�NSDL�and�CDSL�within�15�days.�The�Shareholder�and�Investor�Grievance�Committee�generally�meets�as�and�when�required�to�effect�the�shares�received�for�transfer�in�physical�form.

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Categories�of�Shareholders�as�on�31st�March�2014

� � � � � � (`.1/-�each)�� Category� � No.�of�Shares� %�To�Total

� Promoters�� 5,03,67,220� 31.79

� Financial�Institutions/Banks� 1,48,853� 0.09

� Mutual�Funds� 1,64,36,822� 10.37

� Foreign�Institutional�Investors�� 2,11,50,354� 13.35

� Bodies��Corporate� 1,72,25,997� 10.87

� Non�Resident�Indians� 5,23,090� 0.33

� Market�Makers� 1,338� 0.00

� Clearing�Members�� 1,03,820� 0.07

� Employees�� 5,98,494� 0.38

� Public�� � 5,18,98,520� 32.75

� �TOTAL� � 15,84,54,508� 100.00

24

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Distribution�of�Shares�as�on�31st�March�2014�

� No.�of�shares�� � � � � � `.1/-�Fully�Paid�up

� � � � � No.�of�holders� %�of�holders� No.�of�shares� %�of�total�shares

� 1�to�5000� � 19,955� 95.11� 77,43,568� 4.89

� 5001�to�10000� 386� 1.84� 28,02,044� 1.77

� 10001�to�20000� 260� 1.24� 38,04,514� 2.40

� 20001�to�30000� 94� 0.45� 23,86,834� 1.51

� 30001�to�40000� 54� 0.26� 19,58,782� 1.24

� 40001�to�50000� 36� 0.17� 16,65,498� 1.05

� 50001�to�100000� 73� 0.35� 54,63,906� 3.44

� 100001�&�above� 123� 0.58� 13,26,29,362� 83.70

� Total� � � 20,981� 100.00� 15,84,54,508� 100.00

Dematerialisation�of�Shares�and�liquidity�

The�Company�has�arrangement�with�National�Securities�Depository�Ltd.�(NSDL)�as�well�as�Central�Depository�Services�(India)�Limited�(CDSL)�for�demat�facility.

During�the�financial�year�2013-14,� �4,31,487�shares�were�dematted.� �As�on�31st�March,2014,�out�of�15,84,54,508�shares,�total�shares�in�demat�form�is�15,46,15,595�Shares�and�38,38,913�shares�in�physical�form.�This�represents�97.58%�shares�of�the�company�are�in�demat�form�and�2.42%�shares� are� in� physical� form.� The� shares� are� compulsorily� tradable� in�demat�form�with�effect�from�26.6.2000��for�all�investors.�

Outstanding�GDRs/ADRs/Warrants�or�any�Convertible� Instruments�and�their�likely�impact�on�equity

There�are�no�outstanding�warrants�or�any�convertible�instruments.�The�Company�has�not�issued�GDR/ADR.

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Plant�locations��

ELGI�EQUIPMENTS�LIMITED� � � �Elgi�Industrial�Complex� � � � �Trichy�Road,�Singanallur� � � � �Coimbatore�‒�641005CIN�:�L29120TZ1960PLC000351� � � � �

Address�for�Correspondence:

Mr.�S.�Sriram��Chief�Financial�Officer��Elgi�Equipments�LtdElgi�Industrial�ComplexTrichy�Road,�Singanallur,Coimbatore�‒�641005e-mail�:�[email protected]:�91-�422�-�2589136,�2589187Fax:�91-�422�-�2573697

Elgi�Demat�Percentage

Demat Physical

2%

98%

25

Page 28: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

Declaration�for�Code�of�Conduct

I��hereby�affirm�and�state�that�all�Board�Members�and�Senior�Management�personnel�of�the�Company�have�given�a�declaration�pursuant�to�Clause�49(I)(D)�of� the�Listing�Agreement�and� I�hereby�affirm�compliance�with� the� said�code�of� conduct� for� the�Financial�Year�2013-14.

Place:�Coimbatore� � � � � � � � Jairam�VaradarajDate:���29/05/2014��� � � � � � � � Managing�Director

Report�on�Corporate�Governance�31.03.2014

Certificate

To�the�Members�of�Elgi�Equipments�Limited,

I�have�examined�the�compliance�of�conditions�of�Corporate�Governance�by�M/s�Elgi�Equipments�Limited,�for�the�year�ended�on�March�31,�2014�as�stipulated�in�Clause�49�of�the�Listing�Agreement�of�the�said�Company�with�Stock�Exchanges.

The�Compliance�of�conditions�of�Corporate�Governance� is� the�responsibility�of� the�management.�My�examination�was� limited�to�procedures�and�implementation�thereof,�adopted�by�the�Company�for�ensuring�the�compliance�of�the�conditions�of�the�Corporate�Governance.�It�is�neither�an�audit�nor�an�expression�of�opinion�on�the�financial�statements�of�the�Company.

In�my�opinion�and�to�the�best�of�my�information�and�according�to�the�explanations�given�to�me,�I�certify�that�the�Company�has�complied�with�the�conditions�of�Corporate�Governance�as�stipulated�in�the�above�mentioned�Listing�Agreement.

I�state�that�no�investor�grievance�is�pending�for�a�period�exceeding�one�month�against�the�Company�as�per�the�records�maintained�by�the�Investors'�Relation�Committee.

I�further�state�that�such�compliance�is�neither�an�assurance�as�to�the�future�viability�of�the�Company�nor�the�efficiency�or�effectiveness�with�which�the�management�has�conducted�the�affairs�of�the�Company.

� � � � � � � � �M�D�SelvarajCoimbatore�� � � � � �����Practicing�Company�Secretary29/05/2014� � � � � ��C.P.No.�:��411�(�FCS.960)

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

26

Page 29: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITEDCONSOLIDATED

Ten�Years�Performance���(`.�In�Million)

Particulars� � 2013-14� 2012-13� 2011-12� 2010-11� �2009-10�� �2008-09�� �2007-08���2006-07�� �2005-06���2004-05

Revenue�from�Operations� �13,504�� �11,445�� �9,917�� �9,410�� �6,783�� �5,544�� �5,050�� �3,795�� �3,131�� �2,865�� �

Total�Income� � �13,595�� �11,608�� �10,064�� �9,528�� �6,807�� �5,590�� �5,098�� �3,818�� �3,180�� �2,912�� �

Total�Expenditure� �� 12,511�� �10,451�� �8,816�� �8,048�� �5,803�� �4,854�� �4,441�� �3,403�� �2,818�� �2,509�� �

PBDIT� � �1,084�� �1,157�� �1,248�� �1,480�� �1,004�� �736�� �657�� �415�� �362�� �403�� �

Depreciation�/�Amortisation� �262�� �182�� �135�� �115�� �108�� �90�� �77�� �75�� �98�� �101�� �

Interest�Income(+)/Expenditure(-)� �(97)� �(45)� �(7)� �(4)� �44�� �8�� �10�� �5�� �5�� �7�� �

Profit�Before�Tax� �� 725�� �931�� �1,106�� �1,361�� �940�� �654�� �589�� �345�� �269�� �309�� �

Income�Tax� � �269�� �329�� �350�� �472�� �361�� �247�� �171�� �111�� �93�� �95�� �

Profit�After�Tax� �� 455�� �602�� �756�� �890�� �579�� �407�� �419�� �234�� �177�� �214�� �

Dividend�(%)� �� 100�� �100�� �100�� �100�� �200�� �130�� �120�� �100�� �100�� �100�� �

Capital�Employed�(LT)� �6,781�� �6,534�� �3,976�� �3,383�� �2,648�� �1,967�� �1,671�� �1,344�� �1,199�� �1,182�� �

Net�Worth� � �4,636�� �4,336�� �3,976�� �3,383�� �2,621�� �1,967�� �1,671�� �1,342�� �1,197�� �1,094�� �

Total�Loan�Funds� � �2,145�� �2,198�� �-�� �-�� �28�� �-�� �-�� �2�� �46�� �89�� �

Gross�Fixed�Assets� �� 5,773�� �4,669�� �2,404�� �2,071�� �1,810�� �1,581�� �1,383�� �1,289�� �1,196�� �1,136�� �

Net�Block�incl.�Capital�WIP� �4,772�� �3,726�� �1,162�� �904�� �731�� �666�� �516�� �400�� �365�� �405�� �

Investments� � �149�� �149�� �149�� �173�� �143�� �143�� �143�� �144�� �143�� �205�� �

Current�Assets� � �6,484�� �6,332�� �4,819�� �4,581�� �4,270�� �2,526�� �2,746�� �2,068�� �1,661�� �1,419�� �

Current�Liabilities� �� 4,696�� �3,823�� �2,196�� �2,329�� �2,497�� �1,372�� �1,759�� �1,274�� �928�� �824�� �

Net�Working�Capital��� 1,788�� �2,509�� �2,624�� �2,252�� �1,773�� �1,154�� �987�� �794�� �733�� �595�� �

Total�Assets�Excl.�Pre-operative�exps.� �� 11,758�� �10,549�� �6,216�� �5,746�� �5,133�� �3,310�� �3,414�� �2,603�� �2,159�� �2,019�

27

Note:�2013-14�is�strictly�not�comparable�with�the�previous�years�due�to�acquisition�of�companies�viz�Rotair�S.p.a�and�Pattons�Inc�made�during�the�year�2012-13.

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITEDCONSOLIDATED

RATIO CATEGORY / RATIO 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07

� � � � � � � � �OPERATIONAL�PERFORMANCE� � � � � � � � �� � � � � � � � �Material�Consumption�ratio�(%)� �58.26�� �59.45�� �61.63�� �59.94�� �60.56�� �62.35�� �63.80�� �63.06��Regular�Personnel�expenses� �16.67�� �13.30�� �10.24�� �8.42�� �7.80�� �8.15�� �7.16�� �7.92��VRS�&�ESPS�� �-���� �-���� �-���� �0.52�� �1.20�� �-���� �-���� �0.12��Profit�sharing�expenses�(%)� �0.73�� �1.06�� �0.87�� �1.35�� �1.72�� �1.45�� �1.52�� �1.42��Other�Expenses�ratio�(%)� �17.56�� �17.73�� �16.30�� �15.43�� �14.40�� �15.77�� �15.63�� �17.36��Interest�component�ratio�(%)� �0.73�� �0.39�� �0.07�� �0.04�� �0.01�� �0.03�� �0.08�� �0.10��Depreciation�component�ratio�(%)� �1.96�� �1.60�� �1.37�� �1.23�� �1.55�� �1.50�� �1.39�� �1.83��Tax�component�ratio�(%)� �1.90�� �2.68�� �3.29�� �4.66�� �5.03�� �4.10�� �3.04�� �2.65��Other�Income�/�Total�Income�(%)� �1.25�� �1.60�� �1.57�� �1.36�� �0.52�� �0.99�� �1.03�� �0.77��Sales�(net)�per�employee�(`�in�million)� �6.54�� �5.99�� �5.90�� �5.90�� �4.54�� �3.92�� �3.98�� �3.45��� � � � � � � � �FINANCIAL�STRUCTURING� � � � � � � � �Long�Term�Debt�Equity�Ratio� �0.46�� �0.51�� �-���� �-���� �-���� �-���� �-���� �0.00��Net�Working�Capital�/�Total�Assets� �0.25�� �0.24�� �0.65�� �0.66�� �0.67�� �0.59�� �0.59�� �0.59��Investments�/�Total�Assets� �0.02�� �0.02�� �0.04�� �0.05�� �0.05�� �0.07�� �0.09�� �0.11��Inventory�/�Current�Assets� �0.25�� �0.37�� �0.25�� �0.25�� �0.19�� �0.38�� �0.26�� �0.27��Trade�Receivables/�Current�Assets� �0.51� �0.35�� �0.27�� �0.25�� �0.21�� �0.32�� �0.34�� �0.32��� � � � � � � � �LIQUIDITY� � � � � � � � �Current�Ratio� �1.38�� �1.66�� �2.20�� �1.97�� �1.71�� �1.84�� �1.56�� �1.62��Liquidity�Ratio� �0.84�� �1.05�� �1.65�� �1.47�� �1.39�� �1.33�� �1.16�� �1.19��� � � � � � � � �EFFICIENCY� � � � � � � � �Current�Assets�Turnover�Ratio�(CATR)� �2.09�� �2.30�� �2.10�� �2.12�� �1.99�� �2.09�� �2.09�� �2.03��Average�Current�Assets�-�no.�of�days� �175� �158� �174� �173�� �184� �175� �175� �180��Average�Inventory�-�No.�of�days� � � � � � � � �����RM�&�Components� 53�� �45� �47�� �44�� �43�� �43�� �39� �43�����WIP� � �9�� 8�� �6� �5� �5� �6�� �6� �6�����Finished�Goods� 26�� �16� �8�� �7� �10� �14� �15� �13��Trade�Receivables�turnover�ratio�(DTR)� �5.99�� �7.60�� �8.45�� �9.67�� �8.30�� �6.78�� �6.98�� �6.34��Trade�Receivables�-�no�of�days�of�net�sales� 61� �48� 43�� 38�� �44� �54� �52�� �58��Trade�Creditorsʼ�Turnover�Ratio�(TCTR)� �4.57�� �6.31�� �7.16�� �5.63�� �4.20�� �4.33�� �4.01�� �4.10��Trade�Creditors�-�no�of�days� �80�� �58�� �51�� 65�� �87�� 84�� �91� �89��Capital�Turnover�Ratio� �2.01�� �2.45�� �2.68�� �3.10�� �2.92�� �3.03�� �3.34�� �2.98��Net�Fixed�Assets�Turnover�Ratio�(NFATR)� �3.89�� �6.33�� �10.08�� �11.85�� �9.89�� �9.47�� �11.10�� �9.93��Gross�Fixed�Assets�Net�Turnover�ratio�(GFATR)� �2.56�� �3.63�� �4.41�� �4.82�� �3.98�� �3.72�� �3.77�� �3.05��� � � � � � � � �PROFITABILITY� � � � � � � � �Gross�Profit�Margin�(%)� �8.10�� �10.18�� �12.66�� �15.81�� �14.88�� �13.36�� �13.03�� �10.97��PBIT�Margin�(%)� �5.80�� �7.95�� �10.47�� �13.48�� �12.53�� �10.86�� �10.43�� �8.27��Pre-tax�Profit�Margin�(%)� �5.11�� �7.59�� �10.40�� �13.45�� �13.10�� �10.87�� �10.48�� �8.25��Net�Profit�Margin�(%)� �3.21�� �4.91�� �7.10�� �8.79�� �8.07�� �6.77�� �7.45�� �5.59��Post�Tax�Margin�from�Operations�(%)� �2.57�� �4.18�� �6.51�� �8.55�� �8.24�� �6.72�� �7.49�� �5.61��ROTA�(%)� �15.73�� �21.56�� �33.72�� �48.97�� �43.56�� �40.46�� �43.56�� �32.11��ROCE�(%)� �12.35�� �18.56�� �30.25�� �45.26�� �38.98�� �35.91�� �38.90�� �27.23��� � � � � � � � �SHAREHOLDER'�EARNINGS� � � � � � � � �RONW�(%)� �10.15�� �14.48�� �20.54�� �29.64�� �25.25�� �22.40�� �27.80�� �18.44��Earnings�Per�Share�(current�equity)�(`)� �2.87�� �3.80�� �4.77�� �5.62�� �7.34�� �6.49�� �6.67�� �3.73��Dividend�Per�Share�(`)� �1.00�� �1.00�� �1.00�� �1.90�� �1.83�� �1.30�� �1.20�� �1.01��Dividend�Payout�Ratio�(%)� �34.79�� �26.33�� �20.97�� �17.81�� �24.99�� �20.01�� �17.98�� �26.79��Price�Earnings�Ratio�(current�equity)� �28.94�� �22.14�� �15.65�� �21.53�� �9.20�� �6.39�� �8.94�� �16.62��Dividend�Yield� �1.20�� �1.19�� �1.34�� �0.83�� �2.72�� �3.13�� �2.01�� �1.61��Dividend�to�Net�Worth�Ratio�(%)� �3.42�� �3.65�� �3.98�� �4.68�� �5.52�� �4.14�� �4.51�� �4.67��Book�Value�per�share�(`)� �29.26�� �27.36�� �25.09�� �21.35�� �33.21�� �31.36�� �26.64�� �21.39�

Analysis�of�Performance

28

Note:2013-14�is�strictly�not�comparable�with�the�previous�years�due�to�acquisition�of�companies�viz�Rotair�S.p.a�and�Pattons�Inc�made�during�the�year�2012-13.

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Independent�Auditorʼs�Report

To�the�Members�of�ELGI�EQUIPMENTS�LIMITED.�

Report�on�the�Financial�Statements

1.�� We�have�audited�the�accompanying�financial�statements�of�ELGI�EQUIPMENTS� LIMITED("the� Company"),� which� comprise� the�Balance�Sheet�as�at�31st� �March�2014,�and�the�Statement�of�Profit�and�Loss�and�Cash�Flow�Statement�for�the�year�then�ended,�and�a�summary�of�significant�accounting�policies�and�other�explanatory�information,�which�we�have�signed�under�reference�to�this�report.

Management's�Responsibility�for�the�Financial�Statements

2.�� The�Company's�Management�is�responsible�for�the�preparation�of�these� financial� statements� that� give� a� true� and� fair� view� of� the�financial� position,� financial� performance� and� cash� flows� of� the�Company�in�accordance�with�the�Accounting�Standards�referred�to�in�sub-section�(3C)�of�section�211�of�the�Companies�Act,�1956�(”the�Act”)�(which�continue�to�be�applicable�in�respect�of�Section�133�of�the� Companies� Act,� 2013� in� terms� of� General� Circular� 15/2013�dated�13�September�2013�and�Circular�No.�8/2014�dated�04th�April�2014� of� the� Ministry� of� Corporate� Affairs).� This� responsibility�includes�the�design,�implementation�and�maintenance�of�internal�control� relevant� to� the� preparation� and� presentation� of� the�financial�statements�that�give�a�true�and�fair�view�and�are�free�from�material�misstatement,�whether�due�to�fraud�or�error.

Auditor's�Responsibility

3.� Our� responsibility� is� to� express� an� opinion� on� these� financial�statements� based� on� our� audit.� We� conducted� our� audit� in�accordance�with�the�Standards�on�Auditing�issued�by�the�Institute�of�Chartered�Accountants�of�India.�Those�Standards�require�that�we�comply�with�ethical�requirements�and�plan�and�perform�the�audit�to� obtain� reasonable� assurance� about� whether� the� financial�statements�are�free�from�material�misstatement.

4.�� An�audit�involves�performing�procedures�to�obtain�audit�evidence�about�the�amounts�and�disclosures�in�the�financial�statements.�The�procedures�selected�depend�on�the�auditor's�judgement,�including�the�assessment�of�the�risks�of�material�misstatement�of�the�financial�statements,�whether�due� to� fraud�or� error.� In�making� those� risk�assessments,�the�auditors�consider�internal�control�relevant�to�the�Company's� preparation� and� fair� presentation� of� the� financial�statements� in� order� to� design� audit� procedures� that� are�appropriate�in�the�circumstances.�An�audit�also�includes�evaluating�the� appropriateness� of� accounting� policies� used� and� the�reasonableness� of� the� accounting� estimates� made� by�management,�as�well�as�evaluating�the�overall�presentation�of�the�financial�statements.

5.� �We�believe�that�the�audit�evidence�we�have�obtained�is�sufficient�and�appropriate�to�provide�a�basis�for�our�audit�opinion.

Opinion

6.� In�our�opinion�and�to�the�best�of�our�information�and�according�to�the� explanations� given� to� us,� the� financial� statements� give� the�information�required�by�the�Act�in�the�manner�so�required�and�give�a�true�and�fair�view�in�conformity�with�the�accounting�principles�generally�accepted�in�India:

(a)� in� the� case� of� the� Balance� Sheet,� of� the� state� of� affairs� of� the�Company�as�at�31st��March,�2014

(b)� in�the�case�of�the�Statement�of�Profit�and�Loss,�of�the�profit�for�the�year�ended�on�that�date;�and

(c)� in�the�case�of�the�Cash�Flow�Statement,�of�the�cash�flows�for�the�year�ended�on�that�date.

Report�on�other�Legal�and�Regulatory�Requirements

7.� As�required�by�the�Companies�(Auditor's�Report)�Order,�2003,�as�amended� by� 'the� Companies(Auditor's� Report)� (Amendment)�Order� 2004'� ("the� Order")� issued� by� the� Central� Government� of�India�in�terms�of�sub-section�(4A)�of�section�227�of�the�Act,�and�on�the�basis�of�such�checks�of�the�books�and�records�of�the�Company�as�we�considered�appropriate�and�according�to�the� information�and�explanations�given�to�us,�we�give�in�the�Annexure�a�statement�on�the�matters�specified�in�paragraphs�4�and�5�of�the�Order.

8.�� As�required�by�section�227(3)�of�the�Act,�we�report�that:

� (a).�� we� have� obtained� all� the� information� and� explanations�which� to� the� best� of� our� knowledge� and� belief� were�necessary�for�the�purpose�of�our�audit;

� (b).� in�our�opinion�proper�books�of�account�as�required�by�law�have�been�kept�by�the�Company�so�far�as�appears�from�our�examination�of� those�books;[and�proper� returns�adequate�for� the� purposes� of� our� audit� have� been� received� from�branches�not�visited�by�us];

� (c).�� the�Balance�Sheet,�Statement�of�Profit�and�Loss,�and�Cash�Flow�Statement�dealt�with�by�this�Report�are�in�agreement�with� the�books�of� account� [and�with� the� returns� received�from�branches�not�visited�by�us];

� (d).� in�our�opinion,� the�Balance�Sheet,�Statement�of�Profit�and�Loss,�and�Cash�Flow�Statement�comply�with�the�Accounting�Standards�referred�to�in�sub-section�(3C)�of�section�211�of�the�Companies�Act,�1956,�read�with�the�General�Circular�15/2013�dated� 13th� September� 2013� of� the� Ministry� of� Corporate�Affairs�in�respect�of�Section�133�of�the�Companies�Act,�2013.

� (e).� on� the� basis� of�written� representations� received� from� the�Directors�as�on�31st��March,�2014,�and�taken�on�record�by�the�Board�of�Directors,�none�of�the�Directors�is�disqualified�as�on�31st�March,�2014�from�being�appointed�as�a�Director�in�terms�of� clause� (g)� of� sub-section� (1)� of� section� 274� of� the�Companies�Act,�1956.

For�RJC�Associates� �����������Chartered�AccountantsFirm�Regn.�No.�:�003496S�����������������������R.�Jayachandran�PartnerMembership�No.�021848���

Place�:�Coimbatore����Date� :�29/05/2014

29

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

The� Annexure� referred� to� in� paragraph� 7� of� our� report� of� even� date� to� the� members� of�ELGI�Equipments�Limited�on�the�accounts�of�the�Company�for�the�year�ended�31st��March,�2014.

On�the�basis�of�such�checks�as�we�considered�appropriate�and�according� to� the� information� and� explanation� given� to� us�during�the�course�of�our�audit,�we�report�that:

i.�� (a)� The�Company�has�maintained�proper�records�showing�full� particulars� including� quantitative� details� and�situation�of�its�fixed�assets.

� (b)�As� explained� to�us,� fixed�assets�have�been�physically�verified� by� the� management� according� to� a� phased�programme� designed� to� cover� all� the� items� over� a�period,� which� in� our� opinion� is� reasonable� having�regard�to�the�size�of�the�Company�and�the�nature�of�its�assets.� Pursuant� to� the� programme,� a� portion� of� the�fixed� assets� has� been� physically� verified� by� the�management� during� the� year� and� no� material�discrepancies�have�been�noticed�on�such�verification.

� (c)� In�our�opinion�and�according� to� the� information�and�explanations�given�to�us,�no�substantial�part�of�the�fixed�assets� have� been� disposed� off� during� the� year� and�therefore� does� not� affect� the� going� concern�assumption.

ii.�� (a)� The� inventory� has� been� physically� verified� by� the�Management� during� the� year.� In� our� opinion,� the�frequency�of�verification�is�reasonable.

� (b)� In�our�opinion�and�according� to� the� information�and�explanations� given� to� us,� the� procedures� of� physical�ver i f i cat ion � o f � inventor ies � fo l lowed� by � the�management�are�reasonable�and�adequate�in�relation�to� the� size� of� the� Company� and� the� nature� of� its�business.

� (c)� In�our�opinion�and�on�the�basis�of�our�examination�of�the� records,� the� Company� has� maintained� proper�records� of� inventory� and� no� material� discrepancies�were�noticed�on�physical�verification�of�inventories.

iii.�� (a)� The�Company�has�granted�loan�to�Companies�covered�in� the� register� maintained� under� section� 301� of� the�Companies�Act,�1956.�The�maximum�amount�involved�during� the� Year� was� `.� 106.04� million� (PY� `.� 46.63�million)�and�the�year�end�balance�of�loans�granted�to�the�Company�was� ̀ .102.24�million�(PY��̀ .�8.09�million).

� (b)� In�our�opinion,�the�rate�of�interest�and�other�terms�and�conditions�on�which� loans�have�been�granted� to� the�Companies� listed� in� the� register� maintained� under�Section�301�of�the�Companies�Act,�1956�are�not,�prima�facie,�prejudicial�to�the�interest�of�the�Company.�

� (c)� The� Company� is� in� regular� receipt� of� principal�repayment�and�interest�on�the�above�loans.

� (d)� There� is� no� overdue� amount� of� loans� granted� to�Companies,� listed� in� the� register� maintained� under�section�301�of�the�Companies�Act,�1956.

� (e)� The� Company� has� not� taken� any� loans,� secured� or�unsecured� from� Companies,� Firms� or� other� parties�covered�in�the�register�maintained�under�section�301�of�the�Companies�Act,�1956.

iv.� In� our� opinion� and� according� to� the� information� and�explanations� given� to� us,� there� are� adequate� internal�control� procedures� commensurate� with� the� size� of� the�Company�and�the�nature�of�its�business,�for�the�purchase�of�inventories�&�fixed�assets�and�payment�for�expenses�and�for� sale�of�goods� and� services.�During� the� course�of�our�audit,� we� have� not� observed� any� continuing� failure� to�correct�major�weaknesses�in�the�internal�control�system�of�the�Company.

v.�� a)� According�to�the�information�and�explanations�given�to�us,� we� are� of� the� opinion� that� the� particulars� of�contracts�or�arrangements�that�need�to�be�entered�in�to�the� register� maintained� under� section� 301� of� the�Companies,�1956�Act�have�been�so�entered.

� b)� In�our�opinion�and�according� to� the� information�and�explanations� given� to� us,� the� transactions� made� in�pursuance�of�contracts�or�arrangements�exceeding�Rs.�5� lakhs� each� have� been� made� at� prices� which� are�reasonable�having�regard�to�prevailing�market�prices�at�the�relevant�time.

vi.� � The�Company�has�not�accepted�any�deposits�from�the�public� covered� under� section� 58A� and� 58AA� of� the�Companies�Act,�1956�and�the�rules�framed�thereunder.

vii.�� In� our� opinion,� the� Company� has� an� internal� audit�system�commensurate�with�its�size�and�the�nature�of�its�business.

viii.��� We� have� broadly� reviewed� the� books� of� account�relating� to� materials,� labour� and� other� items� of� cost�maintained� by� the� Company� pursuant� to� the� rules�made�by�the�Central�Government�for�the�maintenance�of� cost� records�under� clause� (d)�of� sub-section� (1)�of�section�209�of�the�Act�and�we�are�of�the�opinion�that�prima�facie�the�prescribed�accounts�and�records�have�been�made�and�maintained.

ix.�� (a)� According�to�the�information�and�explanations�given�to�us�and�the�records�of�the�Company,�in�our�opinion,�the�Company� is� regular� in� depositing� with� appropriate�authorities,� undisputed� statutory� dues� including�Provident� Fund,� Investor� Education� and� Protection�Fund,� Employees'� State� Insurance,� Income-tax,�Salestax,�Wealth�Tax,�Service�Tax,�Custom�Duty,�Excise�Duty,�cess�to�the�extent�applicable�and�other�material�statutory�dues�applicable�to�it.

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

(b)�According�to�the�information�and�explanations�given�to�us,�no� undisputed� amounts� payable� in� respect� of� Provident�Fund,�Investor�Education�and�Protection�Fund,�Employeesʼ�State�Insurance,�Income�tax,�Wealth�Tax,�Service�Tax,�Sales�Tax,�Customs�duty,�Excise�Duty�and�cess�were�in�arrears,�as�at�31st�of�March,�2014�for�a�year�of�more�than�six�months�from�the�date�they�became�payable.

(c)� Disputed�Central�Excise�and�Sales�tax�aggregating�̀ . 598.06�million�have�not�been�deposited�since�matters�are�pending�with�relevant�forum�as�indicated�below:

�� � � � � � � �������������������������������������������������������(`.�In�Million)Name�of�the� Nature�of�the� Demand� Forum�whereStatute� dues� �Amount� dispute�is�pending

Sales�Tax� LST�&�Penalty� 8.49� STAT�(AB)-CBE

Sales�Tax� LST�&�Penalty� 574.36� The�High�Court�of� � � Madras

Sales�Tax� CST�&�Penalty� 29.87� STAT�(AB)-CBE

Sales�Tax� LST� 3.28� JC�(APPEALS)-CBE

� Total� 616.00�

Central�Excise� Excise�Duty�&�Penalty� 11.60� Dy.�Commnr.AppealsCentral�Excise� Excise�Duty�&�Penalty� 3.01� CESTAT

� Total��� 14.61

� Grand�Total� 630.61�

x.�� � The�Company�does�not�have�any�accumulated�loss�at�the�end�of�the�financial�year�and�has�not�incurred�cash�loss�during�the�financial�year�covered�by�our�audit�and�in�the�immediately�preceding�financial�year.

xi.�� � In�our�opinion�and�according� to� the� information�and�explanations� given� to� us,� the� Company� has� not�defaulted�in�repayment�of�dues�to�a�financial�institution,�bank�or�debenture�holders.

xii.��� According�to�the�information�and�explanations�given�to�us,�the�Company�has�not�granted�loans�and�advances�on� the� basis� of� security� by� way� of� pledge� of� shares,�debentures�and�other�securities/investments.

xiii.�� The� Company� is� not� a� chit� fund� or� a� nidhi� /mutual�benefit�fund/society.�Therefore,�the�provisions�of�Para�4(xiii)�of�the�Companies�(Auditor's�Report)�Order,�2003�(as�amended)�is�not�applicable�to�the�Company.

xiv.�� In�our�opinion,�the�Company�is�not�dealing�in�or�trading�in� Shares,� securities,� debentures,� mutual� funds� and�other� Investments.� Accordingly,� the� provisions� of�Clause�4(xiv)�of�the�Companies�(Auditor's�Report)�Order,�2003�and�Companies�(Auditor's�Report)�(Amendment)�Order�2004�are�not�applicable�to�the�Company.

xv.��� Based�on�the�information�and�explanations�given�to�us,�in�our�opinion,�the�terms�and�conditions�on�which�the�Company�has�given�Guarantees�for�the�loans�taken�by�the� subsidiaries� during� the� year,� are� not� prima� facie�prejudicial�to�the�interests�of�the�Company

xvi.�� The� Company� has� not� obtained� any� long� term� loans�during�the�year�under�audit.

xvii.�� According�to�the�information�and�explanations�given�to�us�and�on�an�overall�examination�of�the�Balance�Sheet�of�the�Company�as�at�31st��March,�2014,�we�report�that�no�funds� raised� on� short-term�basis� have� been� used� for�long�term�investment�by�the�Company.

xviii.�� The�Company�has�not�made�any�preferential�allotment�of� shares� to� parties� and� Companies� covered� in� the�register� maintained� under� section� 301� of� the�Companies�Act�1956.

xix.�� The�Company�has�not�issued�any�debentures�during�the�year�under�audit.

xx.��� The�Company�has�not�raised�any�money�by�public�issue�during�the�year.

xxi.�� To�the�best�of�our�knowledge�and�belief�and�according�to� the� information� and� explanations� given� to� us,� no�material�fraud�on�or�by�the�Company�has�been�noticed�or�reported�during�the�year,�nor�have�we�been�informed�of�any�such�case�by�the�management.

For�RJC�Associates� �����������Chartered�AccountantsFirm�Regn.�No.�:�003496S�����������������������R.�Jayachandran�PartnerMembership�No.�021848���

Place�:�Coimbatore����Date� :�29/05/2014

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Balance�Sheet�as�at�31st�March,�2014 [ `.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13� � � � � � �� I.� EQUITY�AND�LIABILITIES� � �� � � �� (1)� SHAREHOLDER'S�FUNDS� � �� � (a)�Share�Capital� � 2� � 158.45� � 158.45� � (b)�Reserves�and�Surplus� � 3� � 4802.01� � 4204.74� � � �� (3)� NON-CURRENT�LIABILITIES� � �� � (a)�Deferred�tax�liabilities�(Net)� � 4� � 100.13� � 48.24� � � �� (4)� CURRENT�LIABILITIES� � �� � (a)�Short-term�borrowings� � 5� � 923.68� � 198.34� � (b)�Trade�payables� � 6� � 1204.32� � 1092.94� � (c)�Other�current�liabilities� � 7� � 296.10� � 318.40� � (d)�Short-term�provisions� � 8� � 471.23� � 488.27

� � � TOTAL� � � � 7955.92� � 6509.38

� II.� ASSETS� � �� (1)� NON-CURRENT�ASSETS� � �� � (a)� Fixed�assets� � �� ����� � (i)�Tangible�assets� � 9� � 1566.37� � 935.56� ������ � (ii)�Intangible�assets� � 9� � 2.82� � 3.31� ������ � (iii)�Capital�work-in-progress� � � � 847.95� � 749.23� � (b)� Non-current�investments� � 10� � 868.93� � 850.92� � (c)� Long�term�loans�and�advances� � 11� � 221.76� � 244.69� � (d)� Other�non-current�assets� � 12� � 2.00� � 1.61� � � �� (2)� CURRENT�ASSETS� � �� � (a)� Inventories� � 13� � 1051.93� � 993.01� � (b)� Trade�receivables� � 14� � 1784.08� � 1494.95� � (c)� Cash�and�cash�equivalents� � 15� � 219.14� � 236.39� � (d)� Short-term�loans�and�advances� � 16� � 1385.77� � 995.53� � (e)� Other�current�assets� � 17� � 5.17� � 4.18

� � TOTAL� � � � 7955.92� � 6509.38

The�accompanying�notes�are�an�integral�part�of�the�financial�statements.

� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S�� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014����� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

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� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014����� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

Statement�of�Profit�and�Loss��for�the�year�ended�31st�March,�2014 [ `.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13� � � � � � �� I.� REVENUE�FROM�OPERATIONS� � 18� � 8283.30� � 8165.39� II.� OTHER�INCOME� � 19� � 57.65� � 129.87� III.� TOTAL�REVENUE�� (I�+II)� � � 8340.95� � 8295.26� IV.� EXPENSES:� � �� � Cost�of�materials�consumed� � 20� � 3936.26� � 3885.01� � Purchase�of�Traded�goods� � 21� � 991.19� � 959.17� � Changes�in�inventories�of�finished�goods,� � work-in-progress�and�Traded�goods� � 22� � (30.99)� � 15.60�� � Employee�benefit�expenses� � 23� � 908.50� � 935.69� � Finance�Cost� � 24� � 7.77� � 1.47� � Depreciation�and�amortization�expenses� � � � 177.60� � 142.70� � Other�expenses� � 25� � 1262.02� � 1384.95

� � TOTAL�EXPENDITURE� � � � 7252.35� � 7324.59

� V.� PROFIT�BEFORE�EXCEPTIONAL�AND�� � EXTRAORDINARY�ITEMS�AND�TAX� (III�-�IV)� � � 1088.60� � 970.67

� VI.� EXCEPTIONAL�ITEMS�� � � � �-���� � �-���

� VII.�PROFIT�BEFORE�EXTRAORDINARY�� � ITEMS�AND�TAX� (V-VI)� � � 1088.60� � 970.67

� VIII.�EXTRAORDINARY�ITEMS�� � � � �-���� � �-���

� IX.� PROFIT�BEFORE�TAX� (VII�-�VIII)� � � 1088.60� � 970.67

� X.� TAX�EXPENSE:� � �� � �(1)�Current�Tax� � � � 254.06� � 253.85� � �(2)�Deferred�Tax� � � � 51.89� � 4.18

� XI.� PROFIT(LOSS)�FOR�THE�YEAR�FROM�� � CONTINUING�OPERATIONS� (IX�-�X)� � � 782.65� � 712.64

� XII.� PROFIT/(LOSS)�FROM�� � DISCONTINUING�OPERATIONS� � � � �-���� �� ��

� XIII.�TAX�EXPENSE�OF�DISCONTINUING�� � OPERATIONS� � � � �-���� � �-���

� XIV.�PROFIT/(LOSS)�FROM�DISCONTINUING� � OPERATIONS�(AFTER�TAX)� (XII�-�XIII)� � � �-���� � �-���

� XV.� PROFIT/(LOSS)�FOR�THE�YEAR� (XI+XIV)� � � 782.65� � 712.64

� XVI.�EARNINGS�PER�EQUITY�SHARE:� � � � (In�`.)� � (In�`.)

� � Nominal�value�of�share� � � � 1.00� � 1.00

� �������(1)�Basic� � � � 4.94� � 4.50

� �������(2)�Diluted� � � � 4.94� � 4.50

� � � �The�accompanying�notes�are�an�integral�part�of�the�financial�statements.� � � ��

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1.��� Summary�of�Significant�Accounting�PoliciesNotes�to�Financial�Statements�for�the�year�ended�31st�March,�2014

1.1)� Basis�for�preparation�of�Financial�Statements�

� � The�Company�follows�accrual�method�of�Accounting.�The� financial� statements� have� been� prepared� under�the� Historical� Cost� Convention� and� on� the� basis� of�going�concern�and�in�accordance�with�the�Accounting�Standards� notified� under� the� Companies� Act,� 1956�("The�Act").

1.2)� Inventories

� � Inventories�have�been�valued�at�lower�of�cost�and�net�realisable� value.� The� cost� of� inventories� has� been�assigned�using�the�weighted�average�cost�formula.

� � a)��Purchased�items�������-� at�FIFO�-�Net�of��CENVAT�� � � � � � � and�VAT

� � b)�Work-in-Progress������-�� Purchase�cost�net�of�� � � � � � � CENVAT�and�VAT�plus�� � � � � � � proportionate�Overheads

� � c)� Manufactured�items�-� at�cost�excluding�selling��� at�Factory� � � � overheads�and�VAT.

� � d)� Traded�Items�������������-�� at�cost�and�net�of�VAT.

� � e)� Inventory�at� � ���-�� at�cost�including�applicable��� Branches�/�� � � taxes�and�duties.�� Foreign�Branches�����

1.3)� Depreciation

� � Depreciation�is�charged�on�Straight�line�basis�for�Plant�&�Machinery,�Vehicles�and�Computers�and�on�Written�Down� Value� basis� for� other� assets.� Rates� prescribed�under� Schedule�XIV� of� the�Companies�Act,� 1956� are�adopted�except�for�Computers�which�are�depreciated�over� a� period� of� 3� years� at� the� rate� of� 33.33%� per�annum.

1.4)� Revenue�Recognition

� � Sales�:�Sales,�which�includes�excise�duty,�but�excludes�VAT,� is� recognised�at� the� time�of� shipment�of�goods�from�plant�or�from�stock�points.

� � Royalty:� Royalty� is� recognised� on� accrual� basis� in�accordance�with�the�terms�of�the�relevant�Agreement.

� � Rent:�Rental�income�is�recognised�on�accrual�basis�in�accordance�with�terms�of�respective�rent�agreements.

� � Interest:�Interest�is�recognised�on�accrual�basis�taking�into� account� the� amount� outstanding� and� the� rate�applicable.

� � Dividend� :� Dividend� is� recognised� and� accounted�when�the�right�to�dividend�is�established.

1.5)� Fixed�Assets

� � a)� Fixed� assets� are� recorded� at� historical� cost� of�acquisition,� which� includes� all� taxes,� duties� and�other�direct�expenses� incurred�up�to�the�stage�of�commissioning� of� the� asset,� net� of� CENVAT� and�VAT,�wherever�applicable.

� � b)� �Capital�work-in-progress:

� � � Capital�work-in-progress�consisting�of�assets�under�construction,� erection� and� commissioning� are�valued�at�cost� incurred�up�to�the�date�of�Balance�Sheet.

� � c)� An�asset� is� considered�as� impaired� in�accordance�with� Accounting� Standard� 28� on� "Impairment� of�Asset",� when� at� Balance� Sheet� date� there� are�indications�of�impairment�and�the�carrying�amount�of� the� Asset,� or� where� applicable� the� cash�generating� unit� to� which� the� asset� belongs,�exceeds�its�recoverable�amount�(�i.e.�the�higher�of�the�asset's�net�selling�price�and�value�in�use).�The�carrying� amount� is� reduced� to� the� recoverable�amount� and� the� reduction� is� recognized� as� an�impairment�loss�in�the�Statement�of�Profit�and�Loss.

1.6)� Foreign�Currency�Transactions

� � Transactions� in� foreign� currency� are� recorded� at�exchange�rate�prevailing�on�the�date�of�the�transaction.�For� transactions� settled� within� the� year,� exchange�variance� is� charged� to� Statement� of� Profit� and� Loss.�Outstanding� liabilities� and� assets� are� restated� at�exchange� rate�prevailing� at� the� end�of� the� year.� The�resultant� exchange� variances� are� recognized� in� the�Statement�of�profit�and�loss�prepared�for�the�year�on�a�net�off�basis.

1.7)� Investments

� � Long� term� investments� are� valued� at� cost.� However,�when� there� is� a� decline,� other� than� temporary,� the�carrying�amount� is� reduced�to�recognise�the�decline.�Short�term�investments�are�valued�at�cost�or�fair�value�whichever�is�lower.

1.8)�� Employee�Benefits

� � a)�� Provident�Fund:�Provident�Fund�contribution�is�as�per� the� rates� prescribed� by� the� Employees�Provident�Fund�Act�1952�and�the�same�is�charged�to�revenue�account.

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Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014� � b)� Superannuation:� Company� has� an� arrangement�

with� Life� Insurance� Corporation� of� India� for�providing� Superannuation� benefits� to� employees�eligible� as� per� Company's� Rules.� Company's�contribution� to� the� Superannuation� Fund� is�calculated�as�per�agreed�terms�and�provided�in�the�accounts.

� � c)� Leave�Salary�:�Liability�in�respect�of�encashment�of�accumulated� leave� is�provided�based�on�actuarial�valuation.

� � d)� Gratuity:�The�Company�operates�a�defined�benefit�plan�for�the�payment�of�post�employment�benefits�for� its� employees� in� the� form� of� Gratuity� fund�scheme�managed�by�Life�Insurance�Corporation�of�India.�The�expenditure�are�recognized�based�on�the�present� value� of� obligation� as� determined� in�accordance�with�AS�-15�on�"Employee�Benefits".

� � e)� Other�short�term�employee�benefits:�All�the�other�short�term�employee�benefits�such�as�profit�share,�performance�pay,�etc�are�measured�and�provided�on�accrual�basis.

1.9)� Borrowing�Cost

� � Borrowing�cost�includes:

� � a)� Interest� and� Commitment� charges� on� bank�borrowings� and� other� short� term� and� long� term�borrowings.

� � b)�� Amortization� of� ancillary� costs� incurred� in�connection�with�the�arrangement�of�borrowings.

� � c)� Finance�charges�in�respect�of�assets�acquired�under�finance�leases�or�under�other�similar�arrangements.

� � d)� Exchange�difference�arising�from�foreign�currency�borrowings�to�the�extent�that�they�are�regarded�as�an�adjustment�to�interest�costs.

1.10)� Segment�Reporting:

� � Segment� information� for� reportable� segments� is�prepared� in� conformity� with� the� accounting� policies�adopted�for�preparing�the�financial�statements�of�the�Company�as�a�whole.�Costs�that�are�directly�attributable�to�be�business�segments�are�charged�to�the�respective�segments.� Unallocated� income/expenditure� include�general�corporate� income/expenditure�which�are�not�allocable�to�any�business�segment.

1.11)� Deferred�Tax

� � Deferred� Tax� liabilities/assets� are� accounted� for� in�respect�of�all�timing�differences,�as�per�(AS)22.

1.12)� Research�&�Development�Expenses:

� � Revenue�expenditure�on�Research�and�Development�are�charged�off�in�the�year�in�which�they�are�incurred.�

� � Fixed�Assets�purchased�for�the�purpose�of�research�and�development� are� depreciated� as� per� the� Company's�policy�stated�above.

1.13)� Intangible�Assets

� � Intangible�Assets�are�recorded�at�the�cost�of�acquisition�and�are�amortised�over�a�period�of�five�years�or�its�legal/�useful�life�whichever�is�less.

1.14)� Provisions,�Contingent�Liabilities�&�Contingent�Assets:

� � Provisions�are� recognized�at� the�best�estimate�of� the�expenditure�required�to�settle�the�present�obligation�at�the�balance�sheet�date.

� � Contingent�liabilities�do�not�warrant�provisions,�but�are�disclosed�unless�the�possibility�of�outflow�of�resources�is�remote.�

� � Contingent�assets�are�neither�recognized�nor�disclosed�in�the�financial�statements.

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[ `.�In�Million]

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � �� 2� SHARE�CAPITAL� � � �� � � �� � AUTHORISED�SHARE�CAPITAL� � � �� � 30,00,00,000�Equity�Shares�of� `1/-�each� � � � 300.00� � 300.00�� � � � �� � ISSUED,�SUBSCRIBED�AND�FULLY�PAID-UP�SHARES� � � �� � 15,84,54,508�Equity�Shares�of�`1/-�each�fully�paid� � � � 158.45� � 158.45�� � � � �� � � � � � � �� 2.1� Terms�/�Rights�attached�to�Equity�Shares� � � �� � � � �� � The�Company�has�one�class�of�equity�shares�having�a�par�value�of�̀ .�1/-�per�share.�Each�shareholder�is�eligible�for�one�vote�per�

share�held.�The�dividend�proposed�by�the�Board�of�Directors�is�subject�to�the�approval�of�the�shareholders�in�the�ensuing�Annual�General�Meeting,�except�in�case�of�interim�dividend.�In�the�event�of�liquidation,�the�equity�shareholders�are�eligible�to� receive� the� remaining� assets� of� the� Company� after� distribution� of� all� preferential� amounts,� in� proportion� to� their�shareholding.�During�the�year�ended�March�31,�2014,�the�amount�of�dividend�per�share�recognized�as�distributions�to�equity�shareholders��is��̀ .1/-�(March�31,�2013:�̀ .�1/-).�� � � �

� � � � �� 2.2� Reconciliation�of�the�shares�at�the�beginning�and�at�the�end�of�the�reporting�period:�� � �� � Particulars� � � � 31-03-14� � 31-03-13� �� � � � � � � �� � Number�of�equity�shares�at�the�beginning�of�the�year� � � 15,84,54,508� � 15,84,54,508��� � Number�of�equity�shares�at�the�end�of�the�year� � � � 15,84,54,508� � 15,84,54,508�� � � � �� 2.3� Number�of�shares�held�by�share�holders�holding�more�than�5%�of�total�shares� � � �� � Name�of�the�share�holder� � � 31-03-14� %� 31-03-13� %

� � Dark�Horse�Portfolio�Investment�Limited� �� � 2,26,36,730�� 14.29� �2,26,36,730�� 14.29� � SBI�Emerging�Businesses�Fund�� � � �1,26,72,358�� 8.00� �-���� �-���� � Jairam�Varadaraj� �� � 1,23,24,928�� 7.78� �1,23,24,928�� 7.78� � Gagandeep�Credit�Capital�Pvt.�Limited�������������� � �� �81,52,575�� 5.15� �81,52,575�� 5.15

� � � � �� 2.4� ESPS�/�Bonus�issue�during�the�last�5�years:� � F� ace�value�(�In `.)� No�of�Shares� �Financial�Year�� � Employees�Stock�Purchase�Scheme� � � 1� 5,83,600� � 2010-11�� � Bonus�Shares� � � 1� 7,89,35,454� � 2010-11�� � � � �� � � � �� 2.5� There�was�no�forfeiture�of�shares�during�the�year�ended�31/03/2014.� � � �

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

[ `.�In�Million]

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � �� 3� RESERVES�AND�SURPLUS� �� � a)� CAPITAL�RESERVE� � � � 181.41� � 181.41�� � b)� CAPITAL�REDEMPTION�RESERVE� � � � 0.00� � 0.00�� � c)� SECURITIES�PREMIUM�ACCOUNT� � � � 409.37� � 409.37�� � � � � � �� � d)� STATUTORY�RESERVE�(AS�PER�RBI�NORMS)� � � Transfer�on�amalgamation� � � � 5.49� � 5.49�� � e)� GENERAL�RESERVE� � � �� � � As�per�the�last�Balance�Sheet� � � � 982.90� � 911.60� � � Add:�Transfer�from�profit�&�loss�account� � � � 78.30� � 71.30�� � � � � � � 1061.20� � 982.90�� � f)� SURPLUS�FROM�PROFIT�&�LOSS�ACCOUNT� � � �� � � As�per�the�last�Balance�Sheet� � � � 2625.57� � 2169.61�� � � Add:�Current�year�surplus� � � � 782.65� � 712.64�� � � � � � � 3408.22� � 2882.25�� � � Less:�Proposed�dividend�(�`.�1/-�per�share)� � � � 158.45� � 158.45�� � � Less:�Provision�for�tax�on�dividend� � � � 26.93� � 26.93�� � � Less:�Transfer�to�general�reserve� � � � 78.30� � 71.30�� � � � � � � 3144.54� � 2625.57�� � � Closing�Balance�(a+b+c+d+e+f)� � � � 4802.01� � 4204.74�� 4� DEFERRED�TAX�LIABILITIES� � �� � As�per�the�last�Balance�Sheet� � � � 48.24� � 44.06�� � Add:��For�the�year� � � � 51.89� � 4.18�� � � � � � � 100.13� � 48.24�� 5� SHORT�TERM�BORROWINGS� � �� � Borrowings�from�Banks� � � � 923.68� � 198.34�� � � � � � � 923.68� � 198.34�� 6� TRADE�PAYABLES� � �� � a)� Acceptances� � � � 213.76� � 201.20�� � b)� Dues�to�Micro,�small�and�Medium�Enterprises� � � � 144.53� � 151.04�� � c)� Others� � � � 846.03� � 740.70�� � � � � � � 1204.32� � 1092.94�� 7� OTHER�CURRENT�LIABILITIES� � �� � a)� Unclaimed�dividends� � � � 4.40� � 3.96�� � b)� Other�payables� � � �� � � i� Advance�from�customers� � � � 141.16� � 168.67�� � � ii� Rent�Advances� � � � 1.54� � 0.14�� � � iii� Dealers�Deposits���������������� � � � 22.92� � 22.31�� � � iv� Employee�related�expenses�payable� � � � 116.76� � 120.09�� � � v� TDS�Payable�/�Other�Taxes�Payable� � � � 9.32� � 3.23� � � � � � � � 296.10� � 318.40

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[ `.�In�Million]

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � ��

� 8� SHORT�TERM�PROVISIONS� � �

� � a)� Provisions�for�employee�benefits� � � � 23.46� � 34.80�

� � b)� Provision�for�income�tax� � � � 262.39� � 268.09�

� � c)� Proposed�dividend� � � � 158.45� � 158.45�

� � d)� Provision�for�tax�on�dividend�� � � � 26.93� � 26.93��

� � � � � � � 471.23� � 488.27

9������TANGIBLE�&�INTANGIBLE�ASSETS [ `.�In�Million]

Gross�Block

Balance�as�at�1�April�2012� �118.89�� �202.82�� �1,625.49�� �132.13�� �4.19�� �2.98�� �2,086.50� �67.98�� �2,154.48�

Additions� �-���� �2.70�� �154.15�� �14.92�� �0.05�� �-���� �171.82�� �1.12� �172.94�

Deletions�/�write�off� �0.66�� �10.57�� �0.86�� �1.23�� �-���� �-���� �13.32�� �-���� �13.32�

Balance�as�at�31�March�2013� �118.23�� �194.95�� �1,778.78�� �145.82�� �4.24�� �2.98�� �2,245.00�� �69.10�� �2,314.10�

Additions� �51.25�� �284.97�� �458.94�� �16.99�� �0.41�� �0.25�� �812.81�� �4.76�� �817.57�

Deletions�/�write�off� �-���� �0.17�� �66.82�� �2.04�� �-���� �-���� �69.03�� �-���� �69.03�

Balance�as�at�31�Mar��2014� �169.48�� �479.75�� �2,170.90�� �160.77�� �4.65�� �3.23�� �2,988.78�� �73.86�� �3,062.64�

Accumulated�depreciation� � � � � � � � �

Balance�as�at�1�April�2012� �-���� �129.33�� �957.52�� �86.83�� �2.84�� �1.88�� �1,178.40�� �61.54�� �1,239.94�

For�the�year� �-���� �7.60�� �122.81�� �7.58�� �0.26�� �0.20�� �138.45�� �4.25�� �142.70�

Deletions�/�write�off� �-���� �6.49�� �0.84�� �1.04�� �-���� �-���� �8.37�� �-���� �8.37�

Balance�as�at�31�March�2013� �-���� �130.44�� �1,079.49�� �93.37�� �3.10�� �2.08�� �1,308.48�� �65.79�� �1,374.27�

For�the�year� �-���� �22.61�� �137.38�� �11.39�� �0.25�� �0.72�� �172.35�� �5.25� �177.60

Deletions�/�write�off� �-���� �0.10�� �56.41�� �1.91� �-���� �-���� �58.42�� �-���� �58.42�

Balance�as�at�31�Mar��2014� �-���� �152.95�� �1,160.46�� �102.85�� �3.35�� �2.80�� �1,422.41� �71.04�� �1,493.45�

Net�Block� � � � � � � � �

�31�March�2013�� �118.23�� �64.51�� �699.29�� �52.45�� �1.14�� �0.90�� �936.52�� �3.31�� �939.83�

�31�March�2014� �169.48�� �326.80�� �1,010.44� �57.92�� �1.30�� �0.43�� �1,566.37�� �2.82�� �1,569.19

Particulars Land BuildingPlant�&

Machinery

Furniture&�Office

EquipmentsVehicle

CanteenEquipment Total Intangible

AssetsTotal

38

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [ `.�In�Million]

� �Particulars�� � � No.�of�Shares�/��� Face�Value� 31-03-14�� 31-03-13� � � � � � � Units� Per�Share� � � � � � � � (In `.)

� 10� NON-CURRENT�INVESTMENTS��(�AT�COST)�� � NON-TRADE�INVESTMENTS� � � �

�� a)� INVESTMENT�PROPERTY� � � � � 0.41� 0.41��� b)� INVESTMENT�IN�EQUITY�INSTRUMENTS� � � ��� � i� INVESTMENT�IN�SUBSIDIARIES� � � ����� � � ATS�Elgi�Limited(Fully�Paid)�[Share�100%]� ��� � 90000�� 10.00� 180.90� 180.90�������� � � ELGI�GULF-(FZE)�[Share�100%]� � ������������� 1������ � 1.78� 1.78��� � � Elgi�Equipments�(Zhejiang)�Limited�-�(China)��[Share�100%]� � � 165.56� 165.56��� � � Elgi�Compressors�Trading�(Shanghai)�Co.�Ltd��(China)�(Share�100%)� � � 28.68� 28.68��� � � SAS�Belair�-�(France)�(Share�100%)� ���� � 179721�� 1276.26� 229.37� 229.37��� � � Elgi�Compressor�Do�BRASIL�IMP.E.EXP.�Ltda���Brazil��(Share�100%)� ����356440�� 25.14� 8.96� 8.96�������� � � Elgi�Australia�Pty�Ltd�-�Australia�(Share�100%)� ��������� �100� 55.02� 0.01� 0.01�������� � � Elgi�Compressors�S.r.l.�(�Italy)�-�[Share�100%]� � 15000� 69.66� 1.04� 1.04�������� � � Elgi�Compressors�USA�Inc.�-�[Share�100%]� � � 10000� 55.96� 0.56� 0.56�������� � � PT�Elgi�Equipments�Indonesia�[Share�99.71%]� � � � 19.00� 0.00�������� � � Adisons�Precision�Instruments�Mfg.�Co.�Ltd.-�[Share�100%]� 743350��� 10.00� 89.06� 89.06��� � � � � � � � 724.92� 705.92��� � ii� INVESTMENT�IN�JOINT�VENTURES� � � ������� � � ELGI�Sauer�Compressors�Ltd�[Share�26%]� � � 169000����� 10.00� 1.69� 1.69��� � � ��� � iii� INVESTMENT�IN�OTHER�BODIES�CORPORATE� � � ��� ���� � Lakshmi�Machine�Works�Ltd� � � 50�� 10.00� 0.01� 0.01��� ����� � State�Bank�of�India� � � 360� 10.00� 0.12� 0.12��� ����� � HDFC�Bank�Limited� � � 2500� 2.00� 0.01� 0.01��� ����� � HDFC�Limited� � � 12000��� �2.00� 0.03� 0.03��� ����� � Magna�Electro�Castings�Ltd� � � 80000��� 10.00� 1.25� 1.25��� ����� � Rajshree�Sugars�&�Chemicals�Ltd� � � 229000�� 10.00� 7.55� 7.55��� ����� � Pricol�Ltd� � � 94245�� 1.00� 0.54� 0.54��� ����� � L.G.Balakrishnan�&�Bros.Ltd.� � � 1248��� 10.00� 0.02� 0.02��� ����� � LGB�Forge�Limited� � � 18720� 1.00� 0.03� 0.03��� ����� � Elgi�Rubber�Company�Limited� � � 763700��� 1.00� 7.95� 7.95��� � � The�Mill�Officers�Co-Op�Housing�Colony��Ltd.,Ahmedabad� 5��� 50.00� 0.00� 0.00��� ����� � Elgi�Securities�Ltd� � � 99300��� 10.00� 0.00� 0.99��� � � � � � � � 17.51� 18.50��� � � Total�(i+ii+iii)� � � � � 744.12� 726.11��� c)� INVESTMENT�IN�PARTNERSHIP�FIRMS� � � ��� ���� � L.G.Balakrishnan�&�Bros����(Share�98%)� � � � � 124.00� 124.00��� � � Elgi�Services�����������������������(Share�80%)� � � � � 0.40� 0.40��� � � � � � � � 124.40� 124.40��� GRAND�TOTAL�(a+b+c)� � � � � 868.93� 850.92�

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� 10.1� DETAILS�OF�INVESTMENT�IN�PARTNERSHIP�FIRMS:�� � �� � Name�of�the�Firm� Name�of�the�Partner� � 31-03-14� � 31-03-13� � � � � � Capital�� Share� Capital�� Share� � � � � � Invested� %� Invested� %� � � � � � (`.�Million)� � (`.�Million)�� � L.G.Balakrishnan�&�Bros.� Elgi�Equipments�Ltd� � 124.00� 98.00� 124.00� 98.00� � � � Elgi�Ultra�Industries�Ltd� � 2.50� 2.00� 2.50� 2.00� � Elgi�Services� Elgi�Equipments�Ltd� � 0.40� 80.00� 0.40� 80.00� � � � Elgi�Ultra�Industries�Ltd� � 0.10� 20.00� 0.10� 20.00� � � � �

� �� � � � � � � �[ `.�In�Million]� Particulars�� � � �� 31-03-14� �� 31-03-13

� 10.2� D� ETAILS�OF�MARKET�VALUE�FOR�QUOTED�SHARES� � � �� � � a)� Total�Cost�of�Quoted�Securities� � � � 17.51� � 17.51�� � � b)� Total�Market�value�of�Quoted�Securities� � � � 44.08� � 48.34�� � � � �� 10.3� AGGREGATE�OF�UNQUOTED�INVESTMENTS�� � � Aggregate�value�of�unquoted�investments� � � � 851.42� � 833.41�� 11� � LONG�TERM�LOANS�AND�ADVANCES� � �� � � a)� Capital�advances� � � � 190.80� � 214.82�� � � b)� Security�deposits� � � � 20.92� � 18.11�� � � c)� Other�loans�and�advances�� � � � 10.04� � 11.76�� � � � � � � � 221.76� � 244.69�� � � (All�Loans�and�advances�are�unsecured�and�considered�good.)� � � �� � � � �� 12� � OTHER�NON-CURRENT�ASSETS� �� � � Long�term�trade�receivables�(on�deferred�credit�terms)� � � 2.00� � 1.61�� � � � � � � � 2.00� � 1.61�� � � (All�long�term�trade�receivables�are�unsecured�and�considered�good.)� � � �� � � � �� 13� � INVENTORIES�(AT�LOWER�OF�COST�AND�NET�REALISABLE�VALUE)� �� � � a)� Raw�materials� � � � 599.02� � 584.31�� � � b)� Work�in�progress� � � � 183.36� � 182.08�� � � c)� Finished�goods� � � � 204.16� � 156.10�� � � d)� Traded�goods� � � � 28.63� � 42.07�� � � e)� Stores�&�Spares� � � � 7.18� � 2.99�� � � f )� Loose�Tools� � � � 26.52� � 24.52�� � � g)� Packing�materials� � � � 3.06� � 0.94�� � � � � � � � 1051.93� � 993.01

� � � Note�:�Raw�materials,�Work-in-progress�and�finished�goods�inventories�include�R�&�D�Inventory�also.�� � � � �� 14� � TRADE�RECEIVABLES�� � � a)� Trade�receivables�outstanding�for�more�than�6�months�from�the�date� � � � they�became�due�for�payment� � � � 56.67� � 48.34�� � � b)� Others� � � � 1727.41� � 1446.61�� � � � � � � � 1784.08� � 1494.95�� � � (All�trade�receivables�are�unsecured�and�considered�good.)

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� � � 31-03-14� �� 31-03-13� � � � � � �� 15� � CASH�AND�BANK�BALANCES� � �� � � a)� Cash�and�cash�equivalents� � � �� � � � i)� Balance�with�banks� � � �� � � � � a)� In�current�account� � � � 61.88� � 92.05�� � � � � b)� In�deposits� � � � 41.96� � 42.40�� � � � ii)� In�Unclaimed�dividend�account� � � � 4.40� � 3.96�� � � � iii)� Cash�in�hand� � � � 0.29� � 0.59�� � � b)� Other�Bank�Balances� � � �� � � � i.� In�deposits�(having�original�maturity�period�of�more�than� � � � � 3�months�but�less�than�12�months)� � � � 104.83� � 97.39�� � � � ii.� Cheques,�drafts�in�hand� � � � 5.78� � -�� � � � � � � � � � 219.14� � 236.39�� 16� � SHORT-TERM�LOANS�AND�ADVANCES�� � � a)� Advances�to�:� � � � i)� Subsidiaries� � � � 821.50� � 256.91� � � � ii)� Other�Companies� � � � 2.40� � 40.40�� � � � iii)� Suppliers� � � � 11.39� � 150.02�� � � � iv)�Employees� � � � 37.98� � 38.85�� � � b)� Rent�Advances� � � � 2.50� � 2.50� � � c)� Cenvat�/�VAT�Receivable�&�Service�Tax�credit��(Net)� � � 53.76� � 42.53�� � � d)� Advance�Tax�/�TDS�Receivable� � � � 316.47� � 319.96�� � � e)� Income�/�refund�receivable� � � � 26.58� � 22.97�� � � f )� Insurance�Premium�Deposit� � � � 0.42� � 0.25� � � g)� Prepaid�expenses� � � � 17.35� � 24.75�� � � h)� Others� � � � 95.42� � 96.39�� � � � � � � � � � 1385.77� � 995.53�� � � (All�Loans�and�advances�are�unsecured�and�considered�good.)� � � �� 17� � OTHER�CURRENT�ASSETS� �� � � Interest�accrued� � � � 5.17� � 4.18�� � � � � � � � � � 5.17� � 4.18�� 18� � REVENUE�FROM�OPERATIONS� � �� � � a)� Sale�of�Products� � � � 8603.52� � 8610.36�� � � b)� Sale�of�Services� � � � 90.45� � 83.12�� � � Gross�Sales� � � � 8693.97� � 8693.48�� � � Less:��� � �� � � Excise�Duty�� � � � 490.95� � 560.13�� � � Net�Sales� � � � 8203.02� � 8133.35�� � � Other�operating�revenue� � � � 80.28� � 32.04������������������������������� � � � � � 8283.30� � 8165.39�� 18.1� DETAILS�OF�PRODUCTS�SOLD� � � �� � � a)� Air�Compressors� � � � 8203.02� � 8037.95�� � � b)� Others� � � � 0.00� � 95.40�� � � � � � � � � � 8203.02� � 8133.35

[ `.�In�Million]

41

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� � � 31-03-14� �� 31-03-13� � � � � � �

� 19� � OTHER�INCOME�

� � � a)� Interest�Income� � � � 23.54� � 50.38�

� � � b)� Dividend�Income� � � � 1.02� � 9.25�

� � � c)� Rent�receipts� � � � 11.98� � 7.33�

� � � d)� Profit�on�sale�of�assets� � � � 5.15� � 36.97�

� � � e)� Share�of�profit�in�partnership� � � � 0.23� � 0.23�

� � � f )� Miscellaneous�income� � � � 15.73� � 25.71�

� � � � � � � � � � 57.65� � 129.87�

� 20� � COST�OF�MATERIALS�CONSUMED� � �

� � � Opening�Stock�of�Raw�Materials� � � � 564.36� � 545.49�

� � � Purchases� � � � 3943.46� � 3903.88�

� � � � � � � � � � 4507.82� � 4449.37�

� � � Less:�� � � Closing�Stock�of�Raw�Materials� � � � 571.56� � 564.36�

� � � � � � � � � � 3936.26� � 3885.01�

� � � � �

� 20.1� Purchases�include�machining�charges�of�`.63.66�Million�(Previous�year�`.62.66�Million)� � ��

� � � � �

� 20.2� DETAILS�OF�MATERIALS�CONSUMED� � � �

� � � Description�of�the�Item� � �

� � � 1)� Engines�&�Motors� � � � 1052.87� � 844.79�

� � � 2)� Materials�that�do�not�individually�account�for�� � � � 10%�or�more�of�total�consumption� � � � 2883.39� � 3040.22�

� � � � � � � � � � 3936.26� � 3885.01�

� 21� � PURCHASE�OF�TRADED�GOODS�

� � � Description�of�the�Item� � �

� � � 1)� Oil�� � � � � 179.01� � 195.80�

� � � 2)� Materials�that�do�not�individually�account�for�� � � � 10%�or�more�of�total�consumption� � � � 812.18� � 763.37�

� � � � � � � � � � 991.19� � 959.17�

� 22� � CHANGES�IN�INVENTORIES�OF�FINISHED�GOODS,�� � � WORK-IN-PROGRESS�AND�TRADED�GOODS�

� � � Opening�Stock�of�WIP� � � � 152.91� � 178.38�

� � � Opening�Stock�of�Finished�Goods� � � � 148.52� � 146.66�

� � � Opening�Stock�of�Traded�goods� � � � 42.07� � 34.06�

� � � � � � � � � � 343.50� � 359.10�

� � � Less:� � � �

� � � Closing�Stock�of�WIP� � � � 158.67� � 152.91�

� � � Closing�Stock�of�Finished�Goods� � � � 187.19� � 148.52�

� � � Closing�Stock�of�Traded�goods� � � � 28.63� � 42.07�

� � � � � � � � � � 374.49� � 343.50

� � � � � � � � � � (30.99)� � 15.60��

[ `.�In�Million]

42

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ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � �� 23� � EMPLOYEE�BENEFIT�EXPENSES� �� � � Salaries�&�Wages� � � � 722.64� � 709.10�� � � Gratuity� � � � 4.60� � 17.84�� � � Performance�Pay� � � � 84.84� � 98.57�� � � Contribution�to�Providend�fund�&�Superannuation�fund�� � 44.68� � 43.48�� � � Welfare�expenses� � � � 44.56� � 59.82�� � � MD's�Remuneration�(Excluding�performance�pay)� � � 7.18� � 6.88�� � � � � � � � 908.50� � 935.69�� 24� � FINANCE�COSTS� � �� � � Interest�Expenses� � � � 7.77� � 1.47�� � � � � � � � 7.77� � 1.47�� 25� � OTHER�EXPENSES� � �� � � Packing�Charges� � � � 142.71� � 143.87�� � � Consumption�of�Stores� � � � 57.60� � 44.84�� � � Tools�Consumed� � � � 55.85� � 52.84�� � � Commission�and�Discount����� � � � 105.70� � 125.35�� � � Royalty�Payments�� � � � 0.82� � 4.65�� � � Power,�Fuel�&�Lighting� � � � 98.13� � 78.44�� � � Transport�Charges� � � � 99.53� � 110.17�� � � Postage,�Telegrams�&�Telephones� � � � 11.02� � 13.71�� � � Travelling�and�Conveyance� � � � 116.91� � 128.02�� � � Insurance� � � � 7.34� � 8.47�� � � Advertisement�and�Publicity� � � � 21.17� � 18.45�� � � Repairs�and�Maintenance�of� � � �� ���������� ��-Plant�and�machinery� � � � 46.95� � 52.74�� ����������� ��-Building� � � � 20.89� � 22.98�� ��������� ��-Other�Assets� � � � 19.25� � 19.56�� � � Printing�and�Stationery� � � � 7.60� � 8.13�� � � Research�and�Development�expenses�(Refer�note�No.34�)� � 55.35� � 57.08�� � � Bad�Debts�Written�off� � � � 5.44� � 9.92�� � � After�Sales�Expenses� � � � 103.10� � 109.20�� � � Factory�Expenses� � � � 10.98� � 13.79�� � � Rates�&�Tax� � � � 6.32� � 9.62�� � � Auditor's�Remuneration� � � �� ������ � -�Audit�Fees� � � � 1.21� � 1.21�� ����� � �-�Other�Services� � � � 0.28� � 0.13�� � � Miscellaneous�Expenses� � � � 42.84� � 34.46�� � � Subscription,�Periodicals�&�Filing�Fees��� � � � 1.80� � 3.00�� � � Donations� � � � 41.41� � 34.52�� � � Rent� � � � 25.15� � 24.17�� � � Legal�and�Consultancy�Charges� � � � 121.23� � 206.57�� � � Directors'�Sitting�Fees� � � � 0.58� � 0.70�� � � Service�Tax�Payments� � � � 0.93� � 0.38�� � � Exchange�Fluctuation�(Gain�)�/�Loss��(net)� � � � (4.86)� � (10.39)�� � � Loss�on�Sale�of�Assets� � � � 0.60� � 0.63�� � � Excise�Duty�paid� � � � 31.89� � 39.36�� � � Bank�charges� � � � 6.30� � 18.38�� � � � � � � � 1262.02� � 1384.95

[ `.�In�Million]

43

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14

� 26� CONTINGENT�LIABILITIES�AND�COMMITMENTS� � � ����� � a)�Claims�against�the�company�not�acknowledged�as�debts:� � � � � � �� � Name�of�the�Statute� Nature�of�the� Demand� Amount� Forum�where�disputes�is� � � � � � dues� Amount� Paid�/�Adj� Pending� � � � � � � [�`.�In�Million]� [`.�In�Million]�� � � � � � � �� � Sales�Tax� � LST�&�Penalty� 8.49� 8.51� STAT�(AB)-Cbe��� � � � � � LST�&�Penalty� 574.36� -� High�Court,�Madras� � � � � � CST�&�Penalty� 29.87� 20.66� STAT�(AB)-Cbe���� � � � � � CST�� 3.28� 3.28� JC�(APPEALS)-Cbe���� � Central�Excise� Excise�Duty�&�Penalty� 11.60� 0.00� Dy.�Commnr.Appeals���� � � � � � Excise�Duty�&�Penalty� 3.01� 0.10� CESTAT���� � � � � � � �� � The�Company�has�filed�appeals�with�the�appropriate�authorities�of�Central�Excise�and�Sales�Tax�Department�against�� � their��claims.�

� � � � � � � � � �������������������������������������[�`.�In�Million]��������� � b)� Particulars� � � � 31-03-14� � 31-03-13��� � i)� Guarantees�and�Letter�of�credit� � � � 334.08� � 79.9���

� � ii)� Estimated�amount�of�contracts�remaining�to�be�executed�on�capital�account� 1066.97� � 1254.59���� � In� addition� to� the� above,� the� Company� has� given� SBLCs� /� LOCs� of� USD� 2� Million,� USD� 28.5� Million� and� Euro� 8.95� �� � million�in�favour�of�its�subsidiaries�Elgi�Equipments�(Zhejiang)�Limited,�Elgi�Compressors�USA�Inc.�and�Elgi�Compressors� �� � Italy�S.r.l,�respectively.� � � � � � � �� 27� Details�of�security�given�for�borrowings:� �� � Borrowing�from�Banks� D� etails�of��Security�� � � � �� � Fund�Based�and�Non-Fund�Based�Limits�� P� ari-Passu�charge�on�specified�Fixed�Assets�and�the�Current�Assets��

� � from�Banks� �of�the��Company.���

� � � � �

� 28� Details�of�dues�to�Micro,�Small�and�Medium�Enterprise�under�the�Micro,�Small�and�Medium�Enterprise� � Development�Act�2006.�� � � � � � �� � � � � � � � � � � [ `.�In�Million]���� � Particulars� � � � 31-03-14� � 31-03-13��� � a)� The�Principal�amount�due�to�Supplier�under�the�Act.� � S�22�(i)� 144.53� � 151.04�

� � b)� Interest�accrued�and�due�to�Suppliers�on�the�above�amount� S�22�(i)� � � (Other�than�Section�16)� � � � Nil� � Nil���

� � c)� Interest�paid�to�Suppliers�under�the�act�(Section�16)� � S�22�(ii)� Nil� � Nil���

� � d)� Interest�due�and�payable�for�delay�(for�payments�during�the� S�22�(iii)� Nil� � Nil��� � � year�beyond�due�date)� � � � �

� � e)� Payment�made�to�suppliers�(other�than�interest)�beyond�the� S�22�(iii)� Nil� � Nil��� � � appointed�Day,�during�the�year.�� � � �

� � f )� Interest�accrued�&�remaining�unpaid�at�the�end�of�year�to� S�22�(iv)� Nil� � Nil��� � � Suppliers�under�the�Act� � � �

� � g)� Interest�due�&�payable�to�suppliers�under�the�Act�for� � S�22�(v)� Nil� � Nil��� � � payments�already�made� � � �� � � � � � � �� � The�information�has�been�given�in�respect�of�vendors�to�the�extent�they�could�be�identified�as��"Micro�and�Small�� �� � enterprises"�on�the�basis�of�information�available�with�the�Company.�

ELGI�EQUIPMENTS�LIMITED

44

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

� �Particulars�� � � �� � 31-03-14�� 31-03-13� � � � � � �� 29� Details�of�disclosure�as�required�under�AS�15�in�respect�of�defined�benefit�plan�for�Gratuity� � ������ � � � � � � �� � I.� PRINCIPAL�ACTUARIAL�ASSUMPTIONS� � � �������������������������������������������Gratuity(Funded)� ���

� � � (Expressed�as�weighted�averages)� � � � � � �

� � � Discount�Rate� � � � � 9.20%� 8.20%���

� � � Salary�escalation�rate� � � � � 6.00%� 6.00%���

� � � Attrition�rate� � � � � 3.00%� 3.00%���

� � � Expected�rate�of�return�on�plan�asset� � � � � 8.85%� 9.30%���

� � � � � � � �

� � � � � � � �

� � II.� CHANGES�IN�THE�PRESENT�VALUE�OF�THE�OBLIGATION�(PVO)-� � � � ���� � � RECONCILIATION�OF�OPENING�AND�CLOSING�BALANCES� � � � ���

� � � PVO�as�at�the�beginning�of�the�period� � � � � 96.16� 78.91���

� � � Interest�cost� � � � � 7.55� 6.57���

� � � Current�service�cost� � � � � 9.36� 8.18���

� � � Past�service�cost-�(non�vested�benefits)� � � � � -� �-�

� � � Past�service�cost-�(vested�benefits)� � � � � -� �-�

� � � Benefits�paid� � � � � (8.11)� (6.61��)�

� � � Actuarial�loss/(gain)�on�obligation(�balancing�figure)� � � � (5.35)� 9.10���

� � � PVO�as�at�the�end�of�the�period� � � � � 99.61� 96.16���

� � � � � � � �

� � � � � � � �

� � III.� CHANGES�IN�THE�FAIR�VALUE�OF�PLAN�ASSETS-� � � � � ��� � � RECONCILIATION�OF�OPENING�AND�CLOSING�BALANCES� � � � ���

� � � Fair�value�of�plan�assets�as�at�the�beginning�of�the�period� � � 78.87� 66.99���

� � � Expected�return�on�plan�assets� � � � � 7.77� 6.47���

� � � Contributions� � � � � 17.52� 11.92���

� � � Benefits�paid� � � � � (8.11)� (6.61��)�

� � � Actuarial�gain�/�(loss)�on�plan�assets(�balancing�figure)� � � � (0.50)� 0.09���

� � � Fair�value�of�plan�assets�as�at�the�end�of�the�period� � � � 95.55� 78.87�

� � � � � � � �

� � � � � � � �

� � IV.� ACTUAL�RETURN�ON�PLAN�ASSETS� � � � � � �

� � � Expected�return�on�plan�assets� � � � � 7.77� 6.47���

� � � Actuarial�gain/(loss)�on�plan�assets� � � � � (0.50)� 0.09���

� � � Actual�return�on�plan�assets� � � � � 7.26� 6.57���

� � � � � � � �

� � � � � � � �

� � V.� ACTUARIAL�GAIN�/�LOSS�RECOGNISED� � � � � � �

� � � Actuarial�gain/�(loss)�for�the�period�-�obligation� � � � 5.35� (9.10��)�

� � � Actuarial�gain/�(loss)�for�the�period�-�plan�assets� � � � (0.50)� 0.09���

� � � Total�(gain)/�loss�for�the�period� � � � � (4.84)� 9.00���

� � � Actuarial�(gain)/�loss�recognised�in�the�period�� � � � (4.84)� 9.00���� � � � �

[�`.�In�Million]

45

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

� �Particulars�� � � �� 31-03-14�� � 31-03-13� � � � � � �� VI.� AMOUNTS�RECOGNISED�IN�THE�BALANCE�SHEET�AND�RELATED�ANALYSES� � � � ���� � Present�value�of�the�obligation�� � � � 99.61� � 96.16���� � Fair�value�of�plan�assets� � � � 95.55� � 78.87���� � Differences�� � � � 4.06� � 17.29���� � Unrecognised�transitional�liability� � � � -� � ��-������������� � Unrecognised�past�service�cost-�non�vested�benefits� � � -� � ������-���� � Liability�recognised�in�the�balance�sheet� � � � 4.06� � 17.29� � �� � � � � � � �� VII.� EXPENSES�RECOGNISED�IN�THE�STATEMENT�OF�PROFIT�AND�LOSS� � � � ���� � Current�service�cost� � � � 9.36� � 8.18���� � Interest�cost� � � � 7.55� � 6.57���� � Expected�return�on�plan�assets� � � � (7.77)� � (6.47��)�� � Net�actuarial(gain)/loss�recognised�in�the�year� � � � (4.84)� � 9.00���� � Transitional�liability�recognised�in�the�year� � � � -� � -���� � Past�service�cost-�non-vested�benefits� � � � -� � -���� � Past�service�cost-vested�benefits� � � � -� � -���� � Expenses�recognised�in�the�statement�of�profit�and�loss� � � 4.30� � 17.29� � �� � � � � � � �� VIII.�MOVEMENTS�IN�THE�LIABILITY�RECOGNISED�IN�THE�BALANCE�SHEET� � � � ���� � Opening�net�liability� � � � 17.29� � 11.91���� � Expense�as�above� � � � 4.30� � 17.29���� � Contribution�paid� � � � (17.52)� � (11.91��)�� � Closing�net�liability� � � � 4.06� � 17.29� � �� � � � � � � �� IX.� AMOUNT�FOR�THE�CURRENT�PERIOD� � � � � � �� � Present�value�of�obligation� � � � 99.61� � 96.16���� � Plan�Assets� � � � 95.55� � 78.87���� � Surplus�(Deficit)� � � � (4.06)� � (17.29��)�� � Experience�adjustments�on�plan�liabilities-�(loss)�/�gain� � � (3.71)� � (9.02��)�� � Experience�adjustments�on�plan�assets-�(loss)�/�gain� � � (0.50)� � 0.09� � �� � � � � � � �� X.� MAJOR�CATEGORIES�OF�PLAN�ASSETS� � � � � � �� � (AS�PERCENTAGE�OF�TOTAL�PLAN�ASSETS)� � � � � � �� � Government�of�India�Securities� � � � 0.00%� � 0.00%���� � State�Government�Securities�� � � � 0.00%� � 0.00%���� � High�Quality�Corporate�Bonds� � � � 0.00%� � 0.00%���� � Equity�Shares�of�Listed�Companies� � � � 0.00%� � 0.00%���� � Property�� � � � � 0.00%� � 0.00%���� � Special�Deposit�Scheme� � � � 0.00%� � 0.00%���� � Funds�Managed�by�Insurer� � � � 100.00%� � 100.00%���� � Others�(To�Specify)� � � � 0.00%� � 0.00%���� � � � � � � � � 100.00%� � 100.00%

[�`.�In�Million]

46

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

[�`.�In�Million]

� �Particulars�� � � �� 31-03-14�� � 31-03-13� � � � � � �

� 30� EXPENDITURE�IN�FOREIGN�CURRENCY� � � � � � �

� � 1)� Commission� � � � 16.89� � 19.45���

� � 2)� Travelling�expenses� � � � 43.40� � 59.70���

� � 3)� Other�expenses� � � � 51.56� � 73.54�

� � � � � � � � � 111.85� � 152.69���

� 31� CIF�VALUE�OF�IMPORTS� � � � � � �

� � 1)� Raw�materials�and�components� � � � 595.53� � 476.12���

� � 2)� Machinery�spares� � � � 8.07� � 3.30���

� � 3)� Capital�goods� � � � 26.01� � 90.60���

� � 4)� Traded�goods� � � � 195.04� � 205.29���

� � � � � � � � � 824.65� � 775.31���

� 32� DETAILS�OF�MATERIALS�AND�STORES�CONSUMED� � 31-03-14� � 31-03-13� ���

� � � � � � � � [�`.�In�Million]� %� �[�`.�In�Million]� %��

� � Imported� � � � 783.82� 15.82� 666.36� 13.59���

� � Indigenous� � � 4170.24� 84.18� 4238.26� 86.41���

� � � � � � � � 4954.06� 100.00� 4904.62� 100.00���

� � � � � � � � �

� � � � � � � � � � � [�`.�In�Million]���

� � Particulars�� � � � 31-03-14� � 31-03-13�

� �

� 33� DETAILS�OF�EARNINGS�IN�FOREIGN�EXCHANGE�CALCULATED�ON�FOB�BASIS� � � ����

� � Earnings�from�Direct�Exports� � � � 1645.64� � 1396.40���

� � � � � � � �

� 34� DETAILS�OF�R&D�EXPENSES� � � � � � �

� � 1)� Capital�� � � � 9.32� � 19.66���

� � 2)� Salaries�&�wages� � � � 137.77� � 156.25���

� � 3)� R�&�D�materials� � � � 55.35� � 57.08�

� � 4)� Maintenance� � � � 0.79� � 0.10���

� � 5)� Other�Expenses� � � � 40.76� � 31.30�

� � � � � � � � � 243.99� � 264.39���

� Note�:� � � � � � �

� While� the� accounts� of� R� &� D� department� are� maintained� separately,� for� the� purpose� of� presentation,� the� administrative� andother�expenses�are�clubbed�along�with�other�functional�head�of�expenses�and�presented�in�the�statement�of�profit�and�loss.�

47

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

[�`.�In�Million]

� 35� As�required�by�Ministry�of�Corporate�Affairs��General�Circular�No.2/2011�dated�8th�February�2011,�the�Board�of�� � Directors��has�given�its�consent�for�not�attaching�the�Balance�Sheet�of�the�Subsidiary�Companies�listed�below:�� ������

� � 1)� � Adisons�Precision�Instruments�Mfg.Co.Limited,�Coimbatore,�India� � � � ���

� � 2)� � Elgi�Equipments�(Zhejiang)�Limited,�Jiaxing,�China� � � � � ��

� � 3)� � Elgi�Gulf�(FZE),�Sharjah,�U.A.E.� � � � � � �

� � 4)� � Elgi�Compressors�Trading(Shanghai)�Co.Ltd,�China� � � � � ��

� � 5)� � SAS�Belair,�France� � � � � � �

� � 6)� � Elgi�Compressores�Do�BRASIL�IMP.�E.EXP.�Ltda,�Brazil� � � � � ��

� � 7)� � Elgi�Australia�Pty�Ltd,�Australia� � � � � � �

� � 8)� � Elgi�Compressors�Italy�S.r.l.� � � � � � �

� � 9)� � Elgi�Compressors�USA�Inc� � � � � � �

� � 10)� Rotair�Spa,�Italy� � � � � � �

� � 11)� Pattonʼs�Inc.,�USA�� � � � � � �

� � 12)� Pattonʼs�Medical�LLC.,�USA� � � � � � �

� � 13)� PT�Elgi�Equipments�Indonesia�

� � � � � �� � However,� the� Company� undertakes� that� the� annual� accounts� of� the� Subsidiary� Companies� and� the� related� detailed� � �� � information�will�be�made�available�to�the�Companyʼs�investors�seeking�such�information�at�any�point�of�time.��The�annual�� � accounts�of�the�subsidiary�companies�are�kept�open�for�inspection�by�any�investor�at�the�registered�office�of��the�Holding�� � and�Subsidiary�Companies.�� � � � � � �

� � � � � � � �

� 36� Balances�in�the�accounts�of�Sundry�Debtors,�Sundry�Creditors,�Security�and�other�Deposits�have�been�reconciled�� � wherever��letters�of�confirmation�have�been�received�and�necessary�effect�has�been�given�in�the�accounts.�� � � � � � �

� � � � � � � �

� � � � � � � � � � ��[�`.�In�Million]����

� � �Particulars�� � � � 31-03-14� � 31-03-13

� � �

� 37� EARNINGS�PER�SHARE:� � � � � �

� � Net�profit�(`.in�Million)� � � � 782.65� � 712.64���

� � Weighted�average�number�of�shares�outstanding��(No.�in�Million)� � 158.45� � 158.45���

� � Nominal�value�per�share�(in�`.)� � � � 1.00� � 1.00���

� � Basic�Earnings�Per�share�(in�`.)� � � � 4.94� � 4.50���

� � Number�of�shares�after�dilution�(No.�In�Million)� � � � 158.45� � 158.45�������� � (When�partly�paid�shares�become�fully��paid�shares)� � � �

� � Diluted�Earnings�per�share�(in��`.)� � � � 4.94� � 4.50��

48

Page 51: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

� 38� DETAILS�OF�ACCOUNTING�STANDARD�(AS)18,�RELATED�PARTY�DISCLOSURES� � �[ `.�In�Million]

� Particulars� Subsidiaries�������������������������Joint�Venture�&�Others�����������������Key�Managerial� � � � � � � �����Personnel*

� � 2013-14� 2012-13� 2013-14� 2012-13� 2013-14� � 2012-13� � � � � � �� Purchase�of�Goods� 36.11� 15.97� 158.50� 163.12� � �� Sale�of�Goods� 745.30� 461.87� 134.69� 90.59� � �� Sale�of�Assets� 4.19� -� Receiving�of�Services� 4.59� 5.25� 5.23� 56.73� � �� Providing�of�Services� 19.15� 19.90� 4.94� 2.67� � �� Reimbursement�of�Expenses�� � �� � To�related�parties� 0.58� 0.09� -� -� � By�related�parties� 74.12� 86.58� 0.02� -� Finance�� � 97.04� 4.07� -� -� � �� Interest�received� 0.78� 0.25� -� 5.27� � �� Investments� 19.00� 200.11� -� 0.02� � �� Remuneration� � � � � 9.59� 8.74�� Receivable�at�the�end�of�the�year� 595.15� 283.53� 27.19� 83.78� � �� Payable�at�the�end�of�the�year� 16.42� 0.24� -� 3.62� � �� *�Includes�performance�linked�pay�paid�during�the�year.

� Name�of�related�parties�and�description�of�relationship�� � � � � 1� Subsidiaries�including�step�down�subsidiaries� : a.�Adisons�Precision�Instruments�Manufacturing�Company�Limited� ����� � b.�ATS�Elgi�Limited� � � ��� � c.�Elgi-Gulf�(FZE)� � � ��� � d.�Elgi�Equipments�(Zhejiang)�Limited�(China)� � ���� � e.�Elgi�Compressors�Trading�(Shanghai)�Co.�Ltd.�(China)� ����� � f.��SAS�Belair�(France)� � � ��� � g.�Elgi�Compressores�DO�BRASIL�IMP.�E.EXP.�Ltda� � ���� � h.�Elgi�Australia�Pty�Ltd.� � � ��� � i.��Elgi�Compressors�Italy�S.r.l.� � � ��� � j.��Elgi�Compressors�USA�Inc� � � � � � k.�Rotair�Spa�(Italy)� � � ��� � l.�Pattonʼs�Inc�(USA)� � � ��� � m.�Pattonʼs�Medical�LLC.�(USA)� � � � � � n.�PT�Elgi�Equipments�Indonesia� 2� Joint�Venture� : Elgi�Sauer�Compressors�Limited� � � �� 3.� Other�Companies�/�Firms�in�which�Directors� : a.�Elgi�Ultra�Industries�Limited� � � ��� � �are�interested b.�Elgi�Rubber�Company�Limited� � � ��� � c.�L.G.�Balakrishnan�&�Bros�Limited� � � ��� � d.�Ellargi�&�Co� � � � � � e.�LGB�Forge�Limited� � � � � � f.�Magna�Electro�Castings�Limited� � � � � � g.�LGB�Fuel�Systems�(P)�Ltd.� � � � � � h.�Festo�Controls�(P)�Ltd.� � � � � � i.�Mape�Advisory�Group�(P)�Ltd.� � � � � � j.�Mape�Securities�(P)�Ltd.� � � ��� 4.� Firms�in�which�the�Company�is�a�partner� � a.�Elgi�Services� � � ��� � b.�L.G.�Balakrishnan�&�Bros�� 5� Key�Managerial�Personnel� :��� Mr.�Jairam�Varadaraj,��Managing�Director� � ���

� 39� Previous�year�figures�have�been�regrouped�and�re-classified�wherever�necessary�to�make�them�comparable.� ��

49

Page 52: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITEDNo

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50

Page 53: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 ELGI�EQUIPMENTS�LIMITED

Cash�Flow�Statement�for�the�year�ended�31st�March,�2014 [�`. In�Million]

� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � � � � ������������������� � � � � � � � � ����������������� A.� CASH�FLOW�FROM�OPERATING�ACTIVITIES:� � � �� Net�Profit�Before�Tax� � � � 1088.60�� � 970.67�� � � �� Adjustments�for:� � � �� Depreciation� � � 177.60�� � 142.70��� (Profit)/Loss�on�sale�of�Investments� � � 0.45�� � 0.00��� (Profit)/Loss�on�sale�of�assets� � � (5.00)� � (36.34)�� Bad�debts�written�off� � � 5.44�� � 9.92��� Interest�and�Processing��fees�paid� � � 8.67�� � 2.42��� Dividend�received� � � (1.02)� � (9.25)�� Interest�received� � � (23.54)� � (50.38)�� � � � � � � 162.60�� � 59.07�� Operating�Profit�Before�Working�Capital�Changes� � � � 1251.20� � 1029.74�� Adjustments�for:� � � �� (Increase)/Decrease�in�Inventories� � � (58.92)� � (66.15)�� (Increase)/Decrease�in�Trade�Receivables�� � � (294.57)� � (312.31)�� (Increase)/Decrease�in�Long�term�Loans�and�Advances� � and�Other�non�Current�Assets� � � 22.54�� � (171.78)�� (Increase)/Decrease�in�Short�term�Loans�and�Advances� � and�Other�Current�Assets� � � (89.09)� � (92.87)�� Increase/(Decrease)�in�Trade�payable,�Current�Liabilities�and�Provisions� (182.02)� � (121.29)�� � � � � � � (602.08)� � (764.40)� Cash�generated�from�Operations� � � � 649.14�� � 265.34�� � � �� Direct�Taxes�paid� � � � (245.00)� � (245.00)� Net�Cash�from�Operating�Activities��������(A)� � � � 404.14�� � 20.34�� � � � �� B.� CASH�FLOW�FROM�INVESTING�ACTIVITIES� � � �� � � �� Purchases�of�Tangible�&�Intangible�Assets� � � � (917.23)� � (847.45)� Sale�of�Tangible�Assets� � � � 15.59�� � 40.40�� Purchase�of�Investments� � � � (19.00)� � (173.57)� Sale�of�Investments� � � � 0.54�� � 0.00�� Advances�to�Companies� � � � (56.15)� � 14.13�� Interest�received� � � � 22.55�� � 67.60�� Dividend�received� � � � 1.02�� � 9.25�� Net�Cash�Used�in�Investing�Activities������(B)� � � � (952.68)� � (889.63)� � � �� C.� CASH�FLOW�FROM�FINANCING�ACTIVITIES� � � �� � � �� Proceeds�from�Short�Term�Borrowings� � � � 725.34�� � 198.34�� Interest�and�Processing�fees�paid� � � � (8.67)� � (2.42)� Dividend�Paid�&�Dividend�Tax�paid� � � � (185.38)� � (184.16)� � � �� Net�Cash�used�in�Financing�Activities�����(C)� � � � 531.29�� � 11.76�� � � �� NET�INCREASE�IN�CASH�AND�CASH�EQUIVALENTS���(A+B+C)� � � (17.25)� � (857.53)� � � �� OPENING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS�� � � � 236.39�� � 1093.93�� � � �� CLOSING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS�� � � � 219.14�� � 236.39�

� Note:�Figures�within�brackets�denote�Cash�outflow.� � � �

� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S�� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014��������� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

51

Page 54: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

52

�ConsolidatedFinancial�Statements

ELGI�EQUIPMENTS�LIMITED

Page 55: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 CONSOLIDATED�FINANCIAL�STATEMENTS

REPORT�TO�THE�BOARD�OF�DIRECTORS�OF�ELGI�EQUIPMENTS�LIMITED.

1.�� We�have�audited�the�accompanying�consolidated�financial�statements�of�ELGI�EQUIPMENTS�LIMITED("the�Company"),�and� its� subsidiaries� and� joint� venture� Companies;�hereinafter�referred�to�as�"the�Group"�(refer�Note�No.�29�&�30� to� the� attached� consolidated� financial� statements)�which� comprise� the� Consolidated� Balance� Sheet� as� at�March�31,2014,�and�the�Consolidated�Statement�of�Profit�and�Loss�and�the�consolidated�Cash�Flow�Statement�for�the�year�then�ended,�and�a�summary�of�significant�accounting�policies�and�other�explanatory�information,�which�we�have�signed�under�reference�to�this�report.

Management's� Responsibility� for� the� Consolidated�Financial�Statements

2.� The� Company's� Management� is� responsible� for� the�preparation� of� these� consolidated� financial� statements�that�give�a�true�and�fair�view�of�the�consolidated�financial�position,� consolidated� financial� performance� and�consolidated�cash�flows�of�the�Group�in�accordance�with�the�Accounting�principles�generally�accepted�in�India.�This�responsibility� includes� the� design,� implementation� and�maintenance�of�internal�control�relevant�to�the�preparation�and�presentation�of�the�consolidated�financial�statements�that�give�a� true�and� fair�view�and�are� free� from�material�misstatement,�whether�due�to�fraud�or�error.

Auditor's�Responsibility

3.� Our� responsibility� is� to� express� an� opinion� on� these�consolidated�financial�statements�based�on�our�audit.�We�conducted�our�audit�in�accordance�with�the�Standards�on�Auditing�issued�by�the�Institute�of�Chartered�Accountants�of� India.� Those� Standards� require� that� we� comply� with�ethical� requirements� and�plan� and�perform� the� audit� to�obtain� reasonable� assurance� about� whether� the�consolidated� financial� statements� are� free� from�material�misstatement.

4.� An�audit� involves�performing�procedures�to�obtain�audit�evidence� about� the� amounts� and� disclosures� in� the�consolidated� financial� statements.� The� procedures�selected�depend�on�the�auditor's�judgement,�including�the�assessment� of� the� risks� of� material� misstatement� of� the�consolidated�financial�statements,�whether�due�to�fraud�or�error.� In� making� those� risk� assessments,� the� auditors�consider� internal� control� relevant� to� the� Company's�preparation� and� fair� presentation� of� the� consolidated�financial� statements� in�order� to�design�audit�procedures�that� are� appropriate� in� the� circumstances.� An� audit� also�includes� evaluating� the� appropriateness� of� accounting�policies� used� and� the� reasonableness� of� the� accounting�estimates�made�by�management,�as�well�as�evaluating�the�overall� presentation� of� the� consolidated� financial�statements.

5.� We� did� not� audit� the� financial� statements� of� following�Subsidiary� Companies� viz.,� M/s� Elgi� Gulf� FZE,� M/s.� Elgi�Equipments� (Zhejiang)� Limited� (China),� M/s.� Elgi�Compressors�Trading�(Shanghai)�Co.�Ltd.,�(China),�M/s.�SAS�Belair�(France),�M/s.�Elgi�Compressors�Italy�Spa,�M/s.�Rotair�Spa�Italy,�M/s.�Elgi�Compressors�USA�Inc.,�M/s.�Pattonʼs�Inc.,�M/s.�Pattonʼs�Medical�LLC�(USA),Elgi�Equipments�Indonesia�and�a�joint�venture�company�M/s.�Elgi�Sauer�Compressors�Ltd.,�included�in�the�consolidated�financial�statements,�for�the�year�then�ended.�These�financial�statements�and�other�financial�information�have�been�audited�by�other�auditors�whose�reports�have�been�furnished�to�us�and�our�opinion�on�the�consolidated�financial�statements�to�the�extent�they�have�been�derived�from�such�financial�statements�is�based�solely�on�the�report�of�such�other�auditors.�We�believe�that�the� audit� evidence� we� have� obtained� is� sufficient� and�appropriate�to�provide�a�basis�for�our�audit�opinion.

Opinion

6.�� We�report�that�the�consolidated�financial�statements�have�been� prepared� by� the� Company's� Management� in�accordance�with�the�requirements�of�Accounting�Standard�(AS)�21� -�Consolidated�Financial�Statements,�Accounting�Standard� (AS)� 23� -� Accounting� for� investments� in�Associates� in� Consolidated� Financial� Statements,� and�Accounting� Standard� (AS)� 27� -� Financial� Reporting� of�Interests�in�Joint�Ventures�notified�Under�section�211�(3C)�of�the�Companies�Act,�1956

7.�� Based�on�our�audit�and�on�consideration�of�reports�of�other�auditors�on�separate�financial�statements�and�on�the�other�financial� information�of�the�components�of�the�Group�as�referred�to� in�paragraph�5�above,�and�to� the�best�of�our�information�and�according�to�the�explanations�given�to�us,�in�our�opinion,� the�accompanying�consolidated� financial�statements�give�a�true�and�fair�view�in�conformity�with�the�accounting�principles�generally�accepted�in�India:

� (a)� in� the�case�of� the�Consolidated�Balance�Sheet,�of� the�state�of�affairs�of�the�Group�as�at�March�31,�2014

� (b)�in� the� case�of� the�Consolidated�Statement�Profit� and�Loss,�of�the�profit�of�the�group�for�the�year�ended�on�that�date;�and

� (c)� in�the�case�of�the�Consolidated�Cash�Flow�Statement,�of�the�cash�flows�of�the�group�for�the�year�ended�on�that�date.

For�RJC�Associates� ������������Chartered�AccountantsFirm�Regn.No.�:�003496S����������������������R.Jayachandran�PartnerMembership�No.�021848���

Place�:�Coimbatore����Date� :�29/05/2014

ON�CONSOLIDATED�FINANCIAL�STATEMENTS�INDEPENDENT�AUDITORʼS�REPORT�

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ANNUAL�REPORT�2013-14

Balance�Sheet�as�at�31st�March,�2014 [ `.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13� � � � � � �� I.� EQUITY�AND�LIABILITIES� � � �� � � � �� (1)� SHAREHOLDERS'�FUNDS� � � �� � (a)�Share�Capital� � 2� � 158.45� � 158.45� � (b)�Reserves�and�Surplus� � 3� � 4477.66� � 4177.45� � � � �� (2)� NON-CURRENT�LIABILITIES� � � �� � (a)�Long-term�borrowings� � 4� � 2145.14� � 2198.17� � (b)�Deferred�tax�liabilities�(Net)� � 5� � 113.87� � 51.59� � (c)�Long�term�provisions� � 6� � 166.96� � 140.56� � � � �� (3)� CURRENT�LIABILITIES� � � �� � (a)�Short-term�borrowings� � 7� � 1228.34� � 678.47� � (b)�Trade�payables� � 8� � 1968.24� � 1764.50� � (c)�Other�current�liabilities� � 9� � 875.74� � 534.53� � (d)�Short-term�provisions� � 10� � 624.09� � 845.72

� � TOTAL� � � � 11758.49� � 10549.44

� II.� ASSETS� � � �� (1)� NON-CURRENT�ASSETS� � � �� � (a)� Fixed�assets� � � �� ������ � (i)�Tangible�assets� � 11� � 2382.52� � 1604.40� ����� � (ii)�Intangible�assets� � 11� � 1528.27� � 1366.12� ������ � (iii)�Capital�work-in-progress� � � � 861.50� � 755.13� � (b)�Non-current�investments� � 12� � 148.50� � 149.49� � (c)�Deferred�tax�assets�(net)� � 13� � 116.12� � 13.59� � (d)�Long�term�loans�and�advances� � 14� � 235.33� � 327.21� � (e)�Other�non-current�assets� � 15� � 2.18� � 1.61� � � � �� (2)� CURRENT�ASSETS� � � �� � (a)�Inventories� � 16� � 2527.39� � 2331.59� � (b)�Trade�receivables� � 17� � 2427.12� � 2246.41� � (c)�Cash�and�cash�equivalents� � 18� � 687.53� � 730.63� � (d)�Short-term�loans�and�advances� � 19� � 824.54� � 1011.45� � (e)� Other�current�assets� � 20� � 17.49� � 11.81

� � TOTAL� � � � 11758.49� � 10549.44� � � � �� The�accompanying�notes�are�an�integeral�part�of�the�financial�statements.� � �

� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014����� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

CONSOLIDATED�FINANCIAL�STATEMENTS

54

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ANNUAL�REPORT�2013-14 CONSOLIDATED�FINANCIAL�STATEMENTS

� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014����� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

Statement�of�Profit�and�Loss��for�the�year�ended�31st�March,�2014 [ `.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13� � � � � � �� I.� REVENUE�FROM�OPERATIONS� � 21� � 13504.03� � 11445.19� II.� OTHER�INCOME� � 22� � 91.41� � 162.38� III.� TOTAL�REVENUE�� (I�+II)� � � 13595.44� � 11607.57� IV.� EXPENSES:� � � �� � Cost�of�materials�consumed� � 23� � 5961.14� � 5450.27� � Purchase�of�Traded�goods� � 24� � 1993.21� � 1475.67� � Changes�in�inventories�of�finished�goods,� � work-in-progress�and�Traded�goods� � 25� � (155.92)� � (167.28)� � Employee�benefit�expenses� � 26� � 2328.43� � 1633.26� � Finance�Cost� � 27� � 97.22� � 44.56� � Depreciation�and�amortization�expenses� � � � 262.42� � 181.80� � Other�expenses� � 28� � 2384.19� � 2058.70

� � TOTAL�EXPENDITURE� � � � 12870.69� � 10676.98� � � � �� V.� PROFIT�BEFORE�EXCEPTIONAL�AND� � EXTRA�ORDINARY�ITEMS�AND�TAX� (III�-�IV)� � � 724.75� � 930.59� VI.� EXCEPTIONAL�ITEMS�� � � � �-���� � �-���� � � � �� VII.�PROFIT�BEFORE�EXTRA�ORDINARY� � ITEMS�AND�TAX� (V-VI)� � � 724.75� � 930.59� � � � �� VIII.�EXTRA�ORDINARY�ITEMS�� � � � �-���� � �-���� � � � �� IX.� PROFIT�BEFORE�TAX� (VII�-�VIII)� � � 724.75� � 930.59� X.� TAX�EXPENSE:� � � �� � (1)�Current�Tax� � � � 310.66� � 320.08� � (2)�Deferred�Tax� � � � (41.36)� � 8.64� XI.� PROFIT(LOSS)�FOR�THE�YEAR�FROM� � CONTINUING�OPERATIONS� (IX�-�X)� � � 455.45� � 601.87� XII.� PROFIT/(LOSS)�FROM�DISCONTINUING�OPERATIONS� � � �-���� � �-���� XIII.�TAX�EXPENSE�OF�DISCONTINUING�OPERATIONS� � � � �-���� � �-���� XIV.�PROFIT/(LOSS)�FROM�DISCONTINUING� � OPERATIONS�(AFTER�TAX)� (XII�-�XIII)� � � �-���� � �-���� � � � �� XV.� PROFIT/(LOSS)�FOR�THE�YEAR� (XI+XIV)� � � 455.45� � 601.87� � � � �� XVI.�EARNING�PER�EQUITY�SHARE:� � � � (in�`.)� � (in�`.)� � Nominal�value�of�share� � � � 1.00� � 1.00� �������(1)�Basic� � � � 2.87� � 3.80

� �������(2)�Diluted� � � � 2.87� � 3.80� � � � �� The�accompanying�notes�are�an�integeral�part�of�the�financial�statements.� � �

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ANNUAL�REPORT�2013-14 CONSOLIDATED�FINANCIAL�STATEMENTS

Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014.

1.�Summary�of�Significant�Accounting�Policies�to�the�Consolidated��Balance�Sheet�and������Statement�of�Profit�and�Loss

1.1� Basis�of�Accounting

� The� Company� maintains� its� accounts� on� accrual� basis�following� the� historical� cost� convention� in� accordance�with�Generally�Accepted�Accounting�Principles�("GAAP")�and�in�compliance�with�the�provisions�of�the�Companies�Act,�1956�and�the�Accounting�Standards�specified�in�the�Companies� (Accounting� standards)� Rules,� 2006,�prescribed�by�the�Central�Government.

� The� accounts� of� the� all� Subsidiaries� and� Joint� Venture�have�been�prepared�in�compliance�with�the�Accounting�standards� as� specified� in� the� Companies� (Accounting�standards)� Rules,� 2006,� prescribed� by� the� Central�Government,� and� have� been� prepared� in� compliance�with�the�local�laws�and�applicable�Accounting�Standards.

1.2� Principles�of�Consolidation

� The� Consolidated� Financial� Statements� relate� to� Elgi�Equipments�Limited�("the�Company")�and�its�subsidiary�companies.�The�Consolidated�Financial�Statements�have�been�prepared�on�the�following�basis.

� i.� The� financial� statement� of� the� Company� and� its�Subsidiary�Companies�are�combined�on�line-by-line�basis�by�adding�together�the�book�values�of�like�items�of�assets,�liabilities,�income�and�expenses,�after�fully�eliminating� intra-group� balances� and� intra-group�transactions�resulting�in�unrealized�profit�or�losses�in�accordance�with� the�Accounting�Standard� (AS)� -21�"Consolidated� Financial� Statements"� issued� by� the�Institute�of�Chartered�Accountants�of�India.

� ii.� Investments� in� Joint�Ventures�are�accounted� for�by�using� the�proportionate� consolidation�method� laid�down�in�Accounting�Standard�(AS)�-�27�on�"Financial�Reporting� of� interests� in� Joint� ventures".� Inter-Company� transactions�and�balances�are�eliminated�to�the�extent�of�the�Company's� interest� in�the�joint�venture.�For� the�purpose�of�consolidation,� financial�statements�of�the�subsidiaries�are�drawn�up�to�and�as�on�31st�March�2014.

� iii.� As� far� as� possible,� the� Consolidated� Financial�Statements�are�prepared�using�uniform�accounting�policies� for� like� transactions� and� other� events� in�similar�circumstances�and�are�presented�in�the�same�manner� as� the� Company's� Separate� financial�Statements.

� iv.�� Foreign�Currency�Translation

� � Indian� Rupees� is� the� reporting� currency� for� the�Group.� However,� the� local� currency� of� overseas�Subsidiaries�is�different�from�the�reporting�currency�of�the�Group.�All�the�overseas�subsidiaries�have�been�classified� as� non-integral� operations� according� to�Accounting� Standard� 11.� In� respect� of� overseas�subsidiaries,� all� the� assets� and� liabilities� are�translated� using� exchange� rate� prevailing� at� the�Balance�sheet�date.�Revenue,�cost�and�expense�are�translated� using� average� exchange� rates� of� the�foreign� currency� and� the� resultant� gain/loss� have�been� disclosed� as� “Foreign� Currency� Translation�Reserve”.

� v.�� Intangible�assets�and�Amortisation

� � In� case� of� parent� and� its� Subsidiaries,� expenditure�towards�intangible�assets�up�to�31st�March�2014�in�the�book�of�Subsidiaries�are�expensed�out�as�revenue�expenditure�and�are�being�amortized�over�a�year�of�time� (Maximum� five� Years)� in� the� Consolidated�Financial�Statements�depending�upon�the�nature�of�the� expenditure� and� evaluation� of� future� benefits�there�from.

1.3�� Uniform�Accounting�Policies

� The� Consolidated� Financial� Statements� of� Elgi�Equipments� Limited� and� its� subsidiaries� and� joint�venture�have�been�prepared�using�uniform�accounting�policies�for�like�transactions�and�other�events�in�similar�circumstances.

1.4� Investments� other� than� in� subsidiaries� have� been�accounted� as� per� Accounting� Standard� 13� on�Accounting�for�Investments.

1.5� Other�Significant�Accounting�Policies

� These�are�set�out�under�“Notes�on�Accounts”�as�given�in�the� Unconsolidated� Financial� Statements� of� Elgi�Equipments�and�its�Subsidiaries.

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � �� 2� SHARE�CAPITAL� � � �� �� � AUTHORISED�SHARE�CAPITAL:� � � �� � 30,00,00,000�Equity�Shares�of��`1/-�each� � � � 300.00� � 300.00� � � � �� � ISSUED,�SUBSCRIBED�AND�FULLY�PAID-UP�SHARES.� � � �� � 15,84,54,508�Equity�Shares�of�`�1/-�each�fully�paid�� � � �158.45�� � 158.45� � � � �� �

3� RESERVES�AND�SURPLUS� � � � �

� � a)� CAPITAL�RESERVE� � � � 181.41� � 181.41

� � b)� CAPITAL�REDEMPTION�RESERVE� � � � 0.00� � 0.00

� � c)� SECURITIES�PREMIUM�ACCOUNT� � � � 409.37� � 409.37����� � d)� STATUTORY�RESERVE�(AMALGAMATION)� � � � 5.49� � 5.49����

� � e)� FOREIGN�CURRENCY�TRANSLATION�RESERVE� � � 15.54� � (27.89)

� � f)� GENERAL�RESERVE� � � �

� � � As�per�the�last�Balance�Sheet� � � � 989.24� � 916.72

� � � Add:�Transfer�from�profit�&�loss�account� � � � 86.18� � 72.52

� � � � � � � � 1075.42� � 989.24

� � � Less:�Loss�incurred�by�subsidiary�after�acquisition� � � 9.45� � 5.98

� � � � � � � � 1065.97� � 983.26

� � g)� SURPLUS�FROM�STATEMENT�OF�PROFIT�&�LOSS�� � � �

� � � As�per�the�last�Balance�Sheet� � � � 2625.81� � 2291.66

� � � Add:�Current�year�surplus� � � � 455.45� � 601.87

� � � Less:� � � � 3081.26� � 2893.53

� � � Proposed�dividend�(�`.�1/-�per�share)� � � � 166.90� � 166.90

� � � Provision�for�tax�on�dividend�� � � � 28.30� � 28.30

� � � Transfer�to�general�reserve� � � � 86.18� � 72.52

� � � � � � � � 2799.88� � 2625.81

� � � Total�(a+b+c+d+e+f+g)� � � � 4477.66� � 4177.45� � � � � � � � � � �� � � � �� 4� LONG�TERM�BORROWINGS� � Borrowing�from�Bank� � � � 2145.14� � 2198.17� � � � � � � � 2145.14� � 2198.17� � � � �� 5� DEFERRED�TAX�LIABILITIES�(NET)� � As�per�the�last�Balance�Sheet� � � � 51.59� � 44.14� � Add:�For�the�year*� � � � 62.28� � 7.45� � � � � � � � 113.87� � 51.59� � *Includes�translation�differences

[ `.�In�Million]

CONSOLIDATED�FINANCIAL�STATEMENTS

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars�� � � �� 31-03-14� �� 31-03-13

� � � � � � �

� 6� LONG�TERM�PROVISIONS� � �

� � Deferred�purchase�consideration� � � � 166.96� � 140.56

� � � � � � � � 166.96� � 140.56

� 7� SHORT�TERM�BORROWINGS� � �

� � From�Bank� � � � 1228.34� � 678.47

� � � � � � � � 1228.34� � 678.47

� 8� TRADE�PAYABLE

� � a)� Acceptances� � � � 250.14� � 240.71

� � b)� Dues�to�Micro,�Small�and�Medium�Enterprises�� � � 174.28� � 185.39����

� � c)� Others� � � � 1543.82� � 1338.40

� � � � � � � � 1968.24� � 1764.50

� 9� OTHER�CURRENT�LIABILITIES

� � a)� Current�maturities�of�long�term�debts� � � � 327.40� � -

� � b)� Unclaimed�dividends� � � � 4.40� � 3.96

� � c)� Advance�from�customers� � � � 161.51� � 200.89

� � d)� Rent�Advances� � � � 1.54� � 0.14

� � e)� Dealers�Deposits���������������� � � � 29.59� � 28.71

� � f)� Employee�related�expenses�payable� � � � 204.11� � 264.59

� � g)� TDS�Payable�/�Other�Taxes�payable� � � � 20.23� � 17.05

� � h)� Other�payables�� � � � 126.96� � 19.19

� � � � � � � � 875.74� � 534.53

� 10� SHORT�TERM�PROVISIONS�

� � a)� Provisions�for�employee�benefits� � � � 45.34� � 44.65

� � b)� Deferred�purchase�consideration� � � � 0.00� � 244.98

� � c)� Provision�for�income�tax� � � � 309.03� � 334.88

� � d)� Proposed�dividend� � � � 166.90� � 158.45

� � e)� Provision�for�tax�on�dividend� � � � 28.30� � 26.93

� � f)� Others� � � � 74.52� � 35.83

� � � � � � � � 624.09� � 845.72

[ `.�In�Million]

CONSOLIDATED�FINANCIAL�STATEMENTS

58

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ANNUAL�REPORT�2013-14

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

CONSOLIDATED�FINANCIAL�STATEMENTS

[ `.�In�Million]

� �Particulars�� � No.�of�Shares/� Face�Value� 31-03-14� �� 31-03-13 ��Units� per�Share�� � � � � � �(in�`.)

� � �� 12� NON-CURRENT�INVESTMENTS�(�AT�COST)

� � NON-TRADE�INVESTMENTS� � � �� � a)� INVESTMENT�PROPERTY� � � � 0.41� � 0.41� � b)� INVESTMENT�IN�EQUITY�INSTRUMENTS� � � �� � � i)� INVESTMENT�IN�OTHER�BODIES�CORPORATE� � � �� ��� � � Lakshmi�Machine�Works�Ltd� � 50� 10.00� 0.01� � 0.01� ����� � � State�Bank�of�India� � 360� 10.00� 0.12� � 0.12� ����� � � HDFC�Bank�Limited� � 2500� 10.00� 0.01� � 0.01� ����� � � HDFC�Limited� � 12000� 2.00� 0.03� � 0.03� ����� � � Magna�Electro�Castings�Ltd� � 80000� 10.00� 1.25� � 1.25� ����� � � Rajshree�Sugars�&�Chemicals�Ltd� � 229000� 10.00� 7.55� � 7.55� ����� � � Pricol�Ltd� � 94245� 1.00� 0.54� � 0.54� ����� � � L.G.Balakrishnan�&�Bros.Ltd.� � 1248� 10.00� 0.02� � 0.02� ����� � � LGB�Forge�Limited� � 18720� 1.00� 0.03� � 0.03� ����� � � Elgi�Rubber�Company�Limited� � 763700� 1.00� 7.95� � 7.95� ����� � � The�Mill�Officers�Co-Op�Housing�Colony�Ltd.,� � � � Ahmedabad� � 5� 50.00� 0.00� � 0.00� ����� � � Elgi�Securities�Ltd� � 99300� 10.00� 0.00� � 0.99� ����� � � Marol�Co-operative�Industrial�Estate�Limited� 1053� 100.00� 0.11� � 0.11� ����� � � Investment�by�Elgi�Sauer�Compressors�Ltd�[26%�Share]� � � 5.96� � 5.96� ����� � � Banco�Credito�Cooperativo�of�Caraglio� � � � 0.02� � 0.02� � � � � � � 23.60� � 24.59�

11��TANGIBLE�&�INTANGIBLE�ASSETS

Particulars Land BuildingPlant�&

Machinery

Furniture&�Office

EquipmentsVehicle

CanteenEquipment Total Intangible

AssetsTotal

59

�Gross�Block�� � � � � � � � ��Balance�as�at�1�April�2012�� �192.16�� �220.95�� �1,698.38�� �169.30�� �4.19�� �2.98�� �2,287.96�� �115.74�� �2,403.70��Additions�� �185.15�� �274.39�� �396.93�� �62.58�� �9.35�� �1.73�� �930.13�� �1,354.39�� �2,284.52��Deletions�/�write�off�� �0.66�� �10.57�� �3.58�� �4.68�� �0.71�� �-���� �20.20�� �3.83�� �24.03��Translation�differences�� �(2.34)� �(2.36)� �1.10�� �3.02�� �(0.02)� �0.01�� �(0.59)� �4.42�� �3.83��Balance�as�at�31�March�2013�� �374.31�� �482.41�� �2,092.83�� �230.22�� �12.81�� �4.72�� �3,197.30�� �1,470.72�� �4,668.02��Additions�� �51.25�� �298.24�� �577.44�� �46.64�� �2.88�� �1.20�� �977.65�� �20.71�� �998.36��Deletions�/�write�off�� �-���� �0.17�� �73.63�� �3.19�� �-���� �-���� �76.99�� �6.68�� �83.67��Translation�differences�� �20.52�� �38.37�� �42.32�� �10.82�� �1.19�� �0.17�� �113.39�� �75.88�� �189.27��Balance�as�at�31st�Mar�2014�� �446.08�� �818.85�� �2,638.96�� �284.49�� �16.88�� �6.09�� �4,211.35�� �1,560.63�� �5,771.98��Accumulated�depreciation�� � � � � � � � � �-����Balance�as�at�1�April�2012�� �-���� �140.41�� �980.98�� �109.86�� �2.85�� �1.88�� �1,235.98�� �80.97�� �1,316.95��For�the�year�� �-���� �25.36�� �300.92�� �33.96�� �7.19�� �0.20�� �367.63�� �28.51�� �396.14��Deletions�/�write�off�� �-���� �6.49�� �2.91�� �4.48�� �0.71�� �-���� �14.59�� �3.83�� �18.42��From�Revaluation�Reserve� �-���� �0.36�� �-���� �-���� �-���� �-���� �0.36�� �-���� �0.36��Translation�differences�� �-���� �(0.03)� �1.14�� �2.43�� �(0.02)� �-���� �3.52�� �(1.05)� �2.47��Balance�as�at�31�March�2013�� �-���� �159.61�� �1,280.13�� �141.77�� �9.31�� �2.08�� �1,592.90�� �104.60�� �1,697.50��For�the�year�� �-���� �36.00�� �178.79� �31.25�� �1.82�� �2.93�� �251.49�� �11.63�� �262.42�From�Revaluation�Reserve� �-���� �0.26�� �-���� �-���� �-���� �-���� �0.26�� �-���� �0.26��Deletions�/�write�off�� �-���� �0.10�� �59.13�� �2.39�� �-���� �-���� �61.62�� �6.11�� �67.73��Translation�differences�� �-���� �3.20�� 34.68� �7.46�� �1.15�� �0.01�� �45.80�� �(77.76)� �(31.26)Balance�as�at�31st�Mar�2014�� �-���� �198.97�� �1,434.47�� �178.09�� �12.28�� �5.02�� �1,828.83�� �32.36�� �1,861.19�Net�Block�� � � � � � � � �31�March�2013�� �374.31�� �322.80�� �812.70�� �88.45�� �3.50�� �2.64�� �1,604.40�� �1,366.12�� �2,970.52�31�March�2014�� �446.08�� �619.88�� �1,204.49�� �106.40�� �4.60�� �1.07�� �2,382.52�� �1,528.27�� �3,910.79�

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ANNUAL�REPORT�2013-14

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars��� � �� � 31-03-14� �� 31-03-13� � � � � � �� c)� OTHER�INVESTMENTS� � � �� � Investment�in�Government�or�Trust�Securities� � � � 0.09� � 0.09

� d)� INVESTMENT�IN�PARTNERSHIP�FIRMS� � � �� ����� L.G.Balakrishnan�&�Bros����(Share�98%)� � � � 124.00� � 124.00� ����� Elgi�Services���������������������(Share�80%)� � � � 0.40� � 0.40� � � � � � � � 124.40� � 124.40� � GRAND�TOTAL�(a+b+c+d)� � � � 148.50� � 149.49� � � � �� 12.1� DETAILS�OF�MARKET�VALUE�FOR�QUOTED�SHARES� � �� � a)� Total�Cost�of�Quoted�Securities� � � � 17.51� � 17.51� � b)� Total�Market�value�of�Quoted�Securities� � � � 44.08� � 48.34� � � � �� 12.2� AGGREGATE�AMOUNT�OF�UNQUOTED�INVESTMENTS� � � �� � Aggregate�of�unquoted�investments� � � � 130.99� � 131.98� � � � �� 13� �DEFERRED�TAX�ASSETS�(NET)� � As�per�the�last�Balance�Sheet� � � � 13.59� � 3.88� � Add:�For�the�year*� � � � 102.53� � 9.71� � � � � � � � 116.12� � 13.59� � *Includes�translation�differences� 14� LONG�TERM�LOANS�AND�ADVANCES� � �� � a)� Capital�Advances� � � � 190.80� � 288.86� � b)� Security�deposits� � � � 30.63� � 24.88� � c)� Other�loans�and�advances� � � � 13.90� � 13.47� � � � � � � � 235.33� � 327.21� � All�Loans�and�Advances�are�unsecured�and�considered�good.� � � �� � � � �� 15� OTHER�NON-CURRENT�ASSETS� � Long�term�trade�receivable�(on�deferred�credit�terms)� � � 2.18� � 1.61� � � � � � � � 2.18� � 1.61� � All�long�term�trade�receivables�are�unsecured�and�considered�good.� � � ��� 16� INVENTORIES�� � a)� Raw�materials� � � � 1109.68� � 1081.83� � b)� Work�in�progress� � � � 307.81� � 378.24� � c)� Finished�goods� � � � 977.99� � 646.28� � d)� Traded�goods�� � � � 91.99� � 194.24� � e)� Stores�&�Spares� � � � 7.37� � 3.07� � f )� Loose�Tools� � � � 28.89� � 26.81� � g)� Packing�materials� � � � 3.66� � 1.12� � � � � � � � 2527.39� � 2331.59

� � Note�:�Raw�materials,�Work�in�progress�&�Finished�goods�inventories�include�R&D�inventory�also.� �� 17� TRADE�RECEIVABLES� � �� � a)� Trade�receivables�outstanding�for�more�than�6�months� �� � � from�the�date�they�became�due�for�payment� � � 281.11� � 114.80� � b)� Others� � � � 2146.01� � 2131.61� � � � � � � � 2427.12� � 2246.41� � All�trade�receivable�are�unsecured�and�considered�good.

[ `.�In�Million]

CONSOLIDATED�FINANCIAL�STATEMENTS

60

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ANNUAL�REPORT�2013-14

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars��� � �� � � 31-03-14� �� 31-03-13� � � � � � �� 18� CASH�AND�BANK�BALANCES� � a)� CASH�AND�CASH�EQUIVALENTS� � � �� � � i)� Balance�with�banks� � � �� � � � a)� In�current�account� � � � 282.50� � 313.40� � � � b)� In�deposits� � � � 287.69� � 223.50� � � ii)� In�Unclaimed�dividend�account� � � � 4.40� � 3.96� � � iii)� Cheques,�drafts�in�hand� � � � 5.78� � 10.40� � � iv)� Cash�in�hand� � � � 2.33� � 1.98� � b)� OTHER�BANK�BALANCES� � � �� � � i)� In�deposits�(having�original�maturity�year�of�more�than� � � � 3�months�but�less�than�12�months)� � � � 104.83� � 177.39� � � � � � � � � 687.53� � 730.63� 19� SHORT-TERM�LOANS�AND�ADVANCES� � a)� Advances�to�:� � � i)� Companies� � � � 2.40� � 40.40� � �� ii)� Suppliers� � � � 69.15� � 225.56� � � ii)� Employees� � � � 47.70� � 43.17� � b)� Cenvat�/�VAT��Receivable�&�Service�Tax�credit�(Net)� � � 83.39� � 70.65� � c)� Income�/�refund�receivable� � � � 44.73� � 27.38� � d)� Advance�Tax�/�TDS�Receivable� � � � 354.03� � 388.08� � e)� Prepaid�expenses� � � � 127.02� � 109.63� � f)� Insurance�premium�Deposit� � � � 0.48� � 0.25� � g)� Others� � � � � 95.64� � 106.33

� � � � � � � � � 824.54� � 1011.45� � All�Loans�and�Advances�are�unsecured�and�considered�good.� � � �� � � � �� 20� OTHER�CURRENT�ASSETS� � Interest�accrued� � � � 17.49� � 11.81� � � � � � � � � 17.49� � 11.81� 21� REVENUE�FROM�OPERATIONS� � a)� Sale�of�Products� � � � 13419.42� � 11790.83� � b)� Sale�of�Services� � � � 575.41� � 275.40� � Gross�Sales� � � � 13994.83� � 12066.23� � Less:�� � � �� � Excise�Duty�� � � � 576.58� � 655.38� � Net�Sales� � � � � 13418.25� � 11410.85� � Other�operating�revenue� � � � 85.78� � 34.34

����������������� � � � � � � � 13504.03� � 11445.19�� 22� OTHER�INCOME� � �� � a)� Interest�Income� � � � 50.26� � 77.34� � b)� Dividend�Income� � � � 1.09� � 9.32� � c)� Rent�receipts� � � � 6.47� � 4.56� � d)� Profit�on�sale�of�assets� � � � 3.74� � 37.66� � e)� Share�of�profit�in�partnership� � � � 0.23� � 0.23� � f )� Miscellaneous�income� � � � 29.62� � 33.27

� � � � � � � � 91.41� � 162.38

[ `.�In�Million]

CONSOLIDATED�FINANCIAL�STATEMENTS

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ANNUAL�REPORT�2013-14

Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars��� � �� � � 31-03-14� �� 31-03-13� � � � � � �� 23� COST�OF�MATERIALS�CONSUMED� �� � Opening�Stock�of�Raw�Materials� � � � 1059.81� � 704.50� � Purchases� � � � � 5984.78� � 5805.58� � � � � � � � � 7044.59� � 6510.08� � Less:�� � Closing�Stock�of�Raw�Materials� � � � 1083.45� � 1059.81� � � � � � � � � 5961.14� � 5450.27

� � Purchases�include�machining�charges�of `.80.57�Million�(Previous�year� `.79.80�Million)� � � �� � � � �� 24� Purchase�of�Stock�in�Trade� � 1)� Oil��� � � � � 179.01� � 195.80� � 2)� Others� � � � � 1814.20� � 1279.87� � � � � � � � � 1993.21� � 1475.67

� 25� CHANGES�IN�INVENTORIES�OF�FINISHED�GOODS,�� � WORK-IN-PROGRESS�AND�TRADED�GOODS� � Opening�Stock�of�WIP� � � � 349.07� � 186.30� � Opening�Stock�of�Finished�Goods� � � � 288.87� � 183.96� � Opening�Stock�of�Traded�goods� � � � 544.06� � 100.70� � � � � � � � � 1182.00� � 470.96

� � Add:�Stock�on�Acquisition� � � � -� � 543.76� � � � � � � � � 1182.00� � 1014.72� � Less:� � � �� � Closing�Stock�of�WIP� � � � 359.43� � 349.07� � Closing�Stock�of�Finished�Goods� � � � 608.88� � 288.87� � Closing�Stock�of�Traded�goods� � � � 369.61� � 544.06� � � � � � � � � 1337.92� � 1182.00

� � � � � � � � � (155.92)� � (167.28)� � � � �� 26� EMPLOYEE�BENEFIT�EXPENSES� � Salaries�&�Wages� � � � 2095.00� � 1336.69� � Gratuity� � � � � 5.98� � 17.84� � Performance�Pay� � � � 97.90� � 113.64� � Contribution�to�Provident�fund�&�Superannuation�fund� � � 55.17� � 82.66� � Welfare�expenses� � � � 74.38� � 82.43� � � � � � � � � 2328.43� � 1633.26

� 27� FINANCE�COSTS�� � Interest�Expenses� � � � 97.22� � 44.56� � � � � � � � � 97.22� � 44.56

[ `.�In�Million]

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014� �Particulars��� � �� � � 31-03-14� �� 31-03-13

� � � � � � �

� 28� OTHER�EXPENSES

� � Packing�Charges� � � � 188.56� � 188.55

� � Consumption�of�Stores� � � � 73.09� � 55.79

� � Tools�Consumed� � � � 63.41� � 65.07

� � Commission�and�Discount����� � � � 197.64� � 190.09

� � Royalty�Payments�� � � � 0.82� � 4.65

� � Power,�Fuel�&�Lighting� � � � 128.20� � 94.94

� � Transport�Charges� � � � 236.76� � 192.10

� � Postage,�Telegrams�&�Telephones� � � � 37.43� � 28.99

� � Travelling�and�Conveyance� � � � 229.18� � 203.79

� � Insurance� � � � � 72.15� � 29.62

� � Advertisement�and�Publicity� � � � 50.57� � 38.48

� � Repairs�and�Maintenance�of� � � �

� ���������� � -Plant�and�machinery� � � � 57.73� � 63.28

� � � -Building� � � � 41.24� � 33.03

� � � -Other�Assets� � � � 85.18� � 45.09

� � Printing�and�Stationery� � � � 21.22� � 14.76

� � Research�and�Development�expenses� � � � 61.85� � 60.48

� � Bad�Debts�Written�off� � � � 19.48� � 15.65

� � After�Sales�Expenses� � � � 219.04� � 175.43

� � Factory�Expenses� � � � 11.23� � 19.20

� � Rates�&�Tax� � � � 25.71� � 21.17

� � Auditor's�Remuneration� � � �

� � � -Audit�Fees� � � � 5.96� � 8.28

� � � -Other�Services� � � � 0.54� � 1.11

� � Miscellaneous�Expenses� � � � 96.56� � 58.77

� � Subscription,�Periodicals�&�Filing�Fees��� � � � 2.74� � 3.49

� � Donations�� � � � 41.41� � 34.52

� � Rent� � � � � � 85.80� � 74.46

� � Legal�and�Consultancy�Charges� � � � 264.56� � 265.07

� � Directors'�Sitting�Fees� � � � 0.64� � 0.76

� � Service�Tax�Payments� � � � 1.11�� � 0.68�

� � Exchange�Fluctuation�(Gain)�/�Loss�(net)� � � � 10.37� � 4.22

� � Loss�on�Sale�of�Assets� � � � 0.60� � 0.68

� � Excise�Duty�paid� � � � 33.77� � 42.93

� � Bank�charges� � � � 19.64� � 23.57

� � � � � � � � � 2384.19� � 2058.70

[ `.�In�Million]

CONSOLIDATED�FINANCIAL�STATEMENTS

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64

30� Joint�Venture�Company� Elgi�Sauer�Compressors�Limited� � India ���26%� ���������31/03/2014����������������������������-

31� The�value�of�Investments�made�in�wholly�owned�Subsidiary�Companies�and�in�the�joint�venture�have�been�accounted�in�� compliance�with��the�Accounting�Standards�AS-21�&�AS�-27.

32� Other�notes�forming�part�of�accounts These�are�set�at�in�and�under�schedules�and�notes�forming�part�of�the�accounts�for�the�year�ended�31/03/2014�as�given �in�unconsolidated�Financial�Statements�of�Elgi�Equipments�Limited�and�its�Subsidiaries.�� The�annual�accounts�of�the�above�Subsidiary�Companies�are�available�for�inspection�by�any�shareholder�at�the�Registered��� Office�of�the�Holding�and�Subsidiary�Companies.

Notes�on�Accounts�

S.No. Name�of�the�Subsidiares Country�ofIncorporation

%�of�Ownership

Reporting�Date Difference��inReporting�date

�����29.�The�Subsidiary�Companies�considered�in�the�Consolidated�Financial�Statements�are:

1. ATS�Elgi�Limited 100 31/03/2014 -

2. Adisons�Precision�Instruments�ManufacturingCompany�Limited

100 31/03/2014 -

3. Elgi�Gulf�(FZE) 100 31/03/2014 -

4. Elgi�Equipments�(Zhejiang�Limited) 100 31/03/2014 -

5. Elgi�Compressors�Trading�(Shanghai)�Ltd. 100 31/03/2014 -

6. SAS�Belair� 100 31/03/2014 -

7. Elgi�Compressores�DO�BRASIL�IMP.�E.EXP.�Ltda 100 31/03/2014 -

8. Elgi�Australia�Pty�Ltd 100 31/03/2014 -

9. Elgi�Compressors�Italy�S.r.l.� 100 31/03/2014 -

10. Rotair�Spa�

India

India

U.A.E

China

China

France

Brazil

Australia

Italy

Italy 100 31/03/2014 -

11. Elgi�Compressors�USA�Inc. 100 31/03/2014 -

12. Pattonʼs�Inc.� 100 31/03/2014 -

13. Pattonʼs�Medical�LLC. 100 31/03/2014 -

USA

USA

USA

14. PT�Elgi�Equipments�Indonesia 100 31/03/2014 -Indonesia

Page 67: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 CONSOLIDATED�FINANCIAL�STATEMENTS33

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65

Page 68: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT�2013-14 CONSOLIDATED�FINANCIAL�STATEMENTS

[�`.�In�Million]34� Segment��Information

�� � �� � � ��������������������������������������������������Year�Ended�PARTICULARS� � � � 31-03-14� 31-03-13

1� Segment�Revenue(Sales�and�income�from�Services)� � �

� � a)�� Compressors� � � � �11,754.29�� �9,556.58�� � b)�� Automotive�Equipments� � �� � 1,220.19�� �1,439.81�� � c)�� Others� � �� � 529.55�� �448.80�

� � Total�Segment�Revenue� � � � �13,504.03�� �11,445.19�� � Less:�Inter�Segment�Revenue� � � � �-�� �-�

� � Net�Sales/Revenue�from�Operations� � � � �13,504.03�� �11,445.19�� � � �� 2� Segment�Results�(Profit�before�Interest�and�Tax)� � �

� � a)�� Compressors� � � � �648.34�� �672.60�� � b)�� Automotive�Equipments� � � � �82.22�� �152.29�� � c)�� Others� � � � �-���� �(12.12)

� � Total�Segment�Results� � �� � 730.56�� �812.77�

� � Less:�� �� � i)��� Interest�Expense� � � � �97.22�� �44.56��� � ii)��� Unallocable�expenditure�net�of�other�income� � � � �(91.41)� �(162.38)� � � �� � Total�Profit�Before�Tax� � � � �724.75�� �930.59�� � � �� 3� Assets� � �

� � a)��� Compressors� � �� � 10,557.95�� �9,416.26�� � b)�� Automotive�Equipments� � � � �893.08�� �888.35�� � c)��� Others� � � � �42.84�� �81.69�� � d)�� Unallocable�Corporate��Assets� � � � �264.62�� �163.13�

� � Total��Assets� � � � �11,758.49�� �10,549.44�� � � �� 4� Liabilities� � �

� � a)��� Compressors� � � � �6,622.34�� �5,729.57�� � b)�� Automotive�Equipments� � � � �217.52�� �288.97�� � c)��� Others� � � � �1.69�� �2.85�� � d)�� Unallocable�Corporate��Liabilities� � � � �280.83�� �192.15�� � � �� � Total��Liabilities� � � � �7,122.38�� �6,213.54�� � � �35� Figures�for�the�year�ended�March�2014�are�strictly�not�comparable�with�the�previous�year�due�to�acquisition�made�� during�2012-13.� Previous�year�figures�have�been�regrouped�and�re-classified�wherever�necessary�to�make�them�comparable.�

66

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ANNUAL�REPORT�2013-14

Cash�Flow�Statement [�`. In�Million]

� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � � � � ������������������� � � � � � � � � ����������������� A.� CASH�FLOW�FROM�OPERATING�ACTIVITIES:� � � �� Profit�Before�Tax� � � � 724.75�� � 930.59�� � � �� Adjustments�for:� � � �� Depreciation� � � 262.42�� � 181.80��� (Profit)/Loss�on�sale�of�investment� � � 0.45�� � 0.00��� (Profit)/Loss�on�sale�of�assets� � � (3.59)� � (36.98)�� Bad�debts�written�off� � � 19.48�� � 15.65��� Interest�and�Processing��fees�paid� � � 97.52�� � 45.51��� Dividend�received� � � (1.09)� � (9.32)�� Interest�received� � � (50.26)� � (77.34)�

� Operating�Profit�Before�Working�Capital�Changes� � � � 324.93�� � 119.32�� Adjustments�for:� � � � 1049.68�� � 1049.91�� (Increase)/Decrease�in�Inventories� � � (195.80)� � (1125.08)�� (Increase)/Decrease�in�Trade�Receivables�� � � (200.19)� � (944.71)�� (Increase)/Decrease�in�Long�term�Loans�and�Advances� � and�Other�non�Current�Assets� � � 91.31�� � (247.91)�� (Increase)/Decrease�in�Short�term�Loans�and�Advances� � and�Other�Current�Assets� � � 406.52�� � 62.22��� Increase/(Decrease)�in�Trade�payable,�Current�Liabilities�and�Provisions� 99.01�� � 806.47��� � � � � � � 200.85�� � (1449.01)� Cash�generated�from�Operations� � � � 1250.53�� � (399.10)� � � �� Direct�Taxes�Paid� � � � (276.04)� � (308.93)� Net�Cash�From�Operating�Activities��������(A)� � � � 974.49�� � (708.03)� � � � �� B.� CASH�FLOW�FROM�INVESTING�ACTIVITIES� � � �� � � �� Purchases�of�tangible�&�intangible�Assets� � � � (1326.80)� � (2750.49)� Sale�of�tangible�Assets� � � � 20.88�� � 41.68�� Purchase�of�Investments� � � � 0.54�� � (0.05)� Advances�to�Companies� � � � 38.00�� � 18.20�� Interest�received� � � � 44.58�� � 94.13�� Dividend�received� � � � 1.09�� � 9.32�� Net�Cash�Used�in�Investing�Activities������(B)� � � � (1221.71)� � (2587.21)� � � �� C.� CASH�FLOW�FROM�FINANCING�ACTIVITIES� � � �� � � �� Proceeds�from�(Repayment)�of�Long�Term�Borrowings� � � � (53.03)� � 2198.17�� Proceeds�from�Short�Term�Borrowings� � � � 549.87�� � 587.23�� Interest�and�Processing�fees�paid� � � � (97.52)� � (45.51)� Dividend�paid� � � � (195.20)� � (197.90)� � � �� Net�Cash�used�in�Financing�Activities�����(C)� � � � 204.12�� � 2541.99�� � � �� NET�INCREASE�IN�CASH�AND�CASH�EQUIVALENTS���(A+B+C)� � � (43.10)� � (753.25)� � � �� OPENING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS�� � � � 730.63�� � 1483.88�� � � �� CLOSING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS�� � � � 687.53�� � 730.63�

� Note:Figures�within�brackets�denote�Cash�outflow.

� ��������������For�and�on�behalf�of�the�Board��������������������������� �������������������������������"�As�per�our�report�of�even�date”� � � � � � �

JAIRAM�VARADARAJ�� N. MOHAN�NAMBIAR�� � For RJC ASSOCIATESManaging�Director������� Director� Chartered�Accountants������������������������������������������ � Firm�Regn.�No.�:�003496S�� � � � � � �Place��:�Coimbatore� R. SYAM�KUMAR� S. SRIRAM R. JAYACHANDRAN�Date���:�29/05/2014��������� Company�Secretary� Chief�Financial�Officer Partner��� ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No. 021848

CONSOLIDATED�FINANCIAL�STATEMENTS

67

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68

ATS�ELGI�LIMITED

Page 71: ELGI - Annual Report 2013 - 14 · 2019-07-23 · ANNUAL REPORT 2013-14 ELGI EQUIPMENTS LIMITED Notice of the 54th Annual General Meeting NOTICE TO SHAREHOLDERS NOTICE is hereby given

ANNUAL�REPORT

CHAIRMANJairam�Varadaraj

VICE-CHAIRMANHarjeet�Singh�Wahan

MANAGING�DIRECTORRamesh�Ponnuswami

DIRECTORM.�Ramprasad

AUDITORM/s.�RJC�AssociatesChartered�AccountantsCoimbatore

REGISTERED�OFFICES2/A11,�Pollachi�Main�Road,Kurichy�Private�Industrial�EstateKurichy,�Coimbatore�-�641�021.Ph�:�0422�-�2589999Fax�:�0422�-�2589800

Contents

1.�Directorsʼ�Report2.�Auditorʼs�Report3.�Annual�Accounts

ATS�ELGI�LIMITED(CIN:�U34300TZ2007PLC014125)

69

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Statutory�AuditorsThe�Auditors�M/s.�RJC�Associates,�Chartered�Accountants�retire�at�the� ensuing� Annual� General� Meeting� and� are� eligible� for�reappointment.�Fixed�DepositsThe� Company� has� not� accepted� any� deposits� from� the� public�during�the�year.

Directors'�Responsibility�StatementIn�terms�of�Section�217�(2AA)�of�the�Companies�Act,�1956,�the�Board�of�Directors�confirm;

I.� that�in�the�preparation�of�the�annual�accounts,�the�applicable�accounting�standards�had�been�followed�along�with�proper�explanation�relating�to�material�departures;

II.� that�the�directors�had�selected�such�accounting�policies�and�applied� them� consistently� and� made� judgments� and�estimates�that�are�reasonable�and�prudent�so�as�to�give�a�true�and�fair�view�of�the�state�of�affairs�of�the�company�as�on�31st�March,� 2014� and� of� the� profit� of� the� company� for� the� year�ended�on�that�date.

III.� that�the�directors�had�taken�proper�and�sufficient�care�for�the�maintenance�of�adequate�accounting�records�in�accordance�with�the�provisions�of�the�Companies�Act�for�safeguarding�the�assets�of�the�Company�and�for�preventing�and�detecting�fraud�and�other�irregularities.

IV.� that� the� Directors� have� prepared� the� annual� accounts� on� a�"going�concern"�basis.

AcknowledgementsThe� Board� appreciates� the� continued� support� rendered� by�customers,� suppliers,� dealers,� banks,� financial� institution,� and�investors� and� the� faith� reposed� by� the� shareholders� of� the�company.�

The� Board� also� thanks� the� employees� for� their� dedicated� and�sincere�services.� � � � � � � �������������������For�and�on�behalf�of�the�BoardCoimbatore� � �������������������������������������������������JAIRAM�VARADARAJ29/05/2014� � � � � ��������������������������������Chairman

Directorsʼ�ReportDear�ShareholdersYour�directors�are�pleased�to�submit�the�7th�Annual�report�with�the�Audited�Annual�Accounts�of�the�company�for�the�year�ended�31st�March,�2014.� � � � � � � � � � � (`.�In�Million)

�Particulars� � � � � � 31.03.2014� � 31.03.2013

Profit�before�Depreciation�and�Tax� � � � 118.510� � 184.630�� Less:�Depreciation� � � � � ���10.063� � ���6.159��� Profit�Before�Tax� � � � � 108.447� � 178.471� Less:�Provision�for�Tax�(Net�of�Deferred�Tax)� � � � �29.774� � ��55.432� Net�Profit� � � � � � � 78.674� � 123.039� Add:�Opening�Balance�in�P�&�L�Account� � � � 413.208� � 290.169� Amount�available�for�Appropriations� � � � 491.882� � 413.208� The�Directors�recommend�the�following�Appropriations� �� Dividend�� � � � � � � 49.500� � -� Dividend�Tax�� � � � � � 8.415� � -� Transfer�to�General�Reserve� � � � 7.867� � -� Profit�carried�forward� � � � 426.100� � 413.208�

Performance�for�the�yearThe� company's� performance� is� intertwined� with� the� sales� of�automobiles� in� India,� in� particular� the� expansion� of� the� service�network� by� various� auto� companies.� � The� automotive� industry�went�through�its�worst�year�in�a�decade.��Passenger�car�sales�were�down� by� 6%� and� commercial� vehicle� sales� were� down� by� 20%�compared� to� the� previous� year.� Not� only� the� number� of� new�workshops�activated�by�various�vehicle�manufacturers�were�lower�than�the�previous�year�but�the�average�investments�in�equipments�per� workshop� were� also� lower.� � Though� the� business� built� its�market�share�through�the�year,�the�above�factors�have�resulted�in�considerable�reduction�in�demand�for�equipments�and�the�sales�revenue�was�down�significantly.� �The�company�continue�its�focus�on�new�product�launches�in�various�segments�and�expand�its�after�sales�service�related�activities.�

Future�PlansGrowth� in�the�automotive� industry� is�expected�to�be�marginally�higher�in�the�year�2014-15.��While�there�is�optimism�in�the�industry,�it�is�expected�that�for�this�optimism�to�translate�into�meaningful�and�sustainable�growth,�it�will�take�at�least�a�year.��The�company�is�well� positioned� to� exploit� business� opportunities� as� and� when�demand�for�workshop�equipment�pick�up.�

InternationalInternational�business�has�gone�down�by�11%�over�the�previous�year.�During�the�past�year�most�major�markets�where�the�Company�exports�its�products�have�been�affected�by�political�uncertainty�or�poor�economic�growth.�While�the�situation�is�expected�to�continue�into�the�future,�international�business�development�will�focus�on�introduction�of�new�products�in�various�markets�in�the�coming�year�to�help�augment�sales.

DividendFor� the� financial� year� 2013-14� the� Board� of� Director� had�recommended�Dividend�of�̀ .�550�per�share�(5500%)�on�the�paid�up�share� capital� of� `.� 9,00,000.� Subject� to� the� approval� of� share�holders,� an� amount� of� `.� 57.91� million� will� be� paid� as� dividend�including�dividend�distribution�tax�(Previous�year�̀ .�Nil)

DirectorsMr.�Harjeet�Singh�Wahan�of� �your�company� �retires�by�rotation�at�the� ensuing� Annual� General� Meeting� and� being� eligible,� seeks�re�-appointment

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

70

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Annexure�to�the�Directors'�ReportI.� Statement�containing�particulars�pursuant�to�the�Companies�(Disclosure�of�particulars�in�the�Report�of�Board�of�

Directors)�Rules,�1988�and�forming�part�of�the�Directors'�Report.

A.� CONSERVATION�OF�ENERGY

� As� a� measure� of� Energy� Conservation� /� Cost� Saving� Activities,� the� Company� has� made� the� following� attempts� during� theyear�2013-14;

� Replaced�the�existing�old�screw�compressor�to�new�global�series�with�drive�30�HP�to�25�HP�motor.

� Replaced�conventional�tube�lights�to�T5�tube�lights�in�R�&�D�work�shop�&�Point�Booth�Assembly

� Replaced�the�existing�Halogen�light�(500W)�in�to�CFL�light.(18�W)�

� Replaced�the�existing�MV�Light�(250W)�in�to�CF�light�fitting�(80�W)�in�assembly�area�-�30�nos

B.� TECHNOLOGY�ABSORPTION

CE�Certification�from�TUV�Nord,India��has�been�obtained�for�the�newly�launched�Four�Ton�Two�Post�Hydraulic�Lift�designed�to�meet�EN�1493:2010

Developed�Two�Post�Hydraulic�Lift�Base�version�for�commercial�vehicle�segment.

Developed�Two�wheeler�washing�lift�with�reduced�plunger�diameter,�oil�capacity�and�suitable�platform�to�lift�4�two�wheelers.�This�will�help�improving�productivity�and�efficiency�of�washing.

Developed�CRS�Electronic�Measuring�System�with�articulated�arm�concept�aimed�at�0.5�mm�measuring�accuracy�in�repairing�of�damaged�vehicles.

Designed�3D�Wheel�Aligner�with�light�weight�and�unbreakable�target�board.

� � � � � � � � � � � (`.�in�Million)�� EXPENDITURE�ON�R&D� � � � 2013-2014� � 2012-2013

� Capital� �� � � � � � 1.352� �� 1.112� Revenue� � � � � � � 17.386� � 12.484� Total� � � � � � � � 18.738� � 13.596� R�&�D�Expenditure�as�a�percentage�of�Turnover� � � � 1.492%� � ���0.94%

C.�� Foreign�Exchange�Earnings�and�outgo�are�given�in�the�notes�forming�part�of�accounts.�Kindly�refer�the�same.

I.�� Statement�annexed�to�Directorʼs�Report�showing�the�names�and�other�particulars�of�every�employee�of�the�company�pursuant�to�Section�217(2A)�of�the�Companies�Act,�1956,�read�with�the�Companies�(Particulars�of�Employees)�Rules�1975.

�Name� Age� Designation� Remuneration� Qualification� Experience� DOJ���� Previous�� �� �� � (`.In�Million)� �� � �� Employment

�Ramesh������ 45� Managing� 5.256� B.E.,�MBA.� 22�years� 07/11/2011� E.I.D.�Parry�� Ponnuswami� � Director� � � � � (India)�Ltd.

� � � For�and�on�behalf�of�the�Board

Place�:�� Coimbatore� JAIRAM�VARADARAJ��������Date� :� 29/05/2014� Chairman

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INDEPENDENT�AUDITOR'S�REPORT�REPORT�TO�THE�MEMBERS�OF�ATS�ELGI�LIMITED�� Opinion

6.� In� our� opinion� and� to� the� best� of� our� information� and�according� to� the� explanations� given� to� us,� the� financial�statements�give�the�information�required�by�the�Act�in�the�manner� so� required� and� give� a� true� and� fair� view� in�conformity� with� the� accounting� principles� generally�accepted�in�India:�

� (a)� in�the�case�of�the�Balance�Sheet,�of�the�state�of�affairs�of�the�Company�as�at�31st��March�2014

� (b)� in�the�case�of�the�statement�of�Profit�and�Loss�of�the�profit�for�the�year�ended�on�that�date;�and�

� (c)� in�the�case�of�the�Cash�Flow�Statement,�of�the�cash�flows�for�the�year�ended�on�that�date.

Report�on�Other�Legal�and�Regulatory�Requirements

7.� As� required� by� the� Companies� (Auditor's� Report)� Order,�2003,� as� amended� by� 'the� Companies(Auditor's� Report)�(Amendment)� Order� 2004'� ("the� Order")� issued� by� the�Central�Government�of�India�in�terms�of�sub-section�(4A)�of�section�227�of�the�Act,� �and�on�the�basis�of�such�checks�of�the�books�and�records�of�the�Company�as�we�considered�appropriate� and� according� to� the� information� and�explanations� given� to� us,� we� give� in� the� Annexure� a�statement�on�the�matters�specified�in�paragraphs�4�and�5�of�the�Order.�

8.� As�required�by�Section�227(3)�of�the�Act,�we�report�that:

� (a).� we� have� obtained� all� the� information� and�explanations�which�to�the�best�of�our�knowledge�and�belief�were�necessary�for�the�purpose�of�our�audit;

� (b).�� in�our�opinion�proper�books�of�account�as�required�by�law�have�been�kept�by�the�Company�so�far�as�appears�from� our� examination� of� those� books� [and� proper�returns�adequate�for�the�purposes�of�our�audit�have�been�received�from�branches�not�visited�by�us];

� (c).� the�Balance�Sheet,�Statement�of�Profit�and�Loss,�and�Cash�Flow�Statement�dealt�with�by�this�Report�are�in�agreement�with�the�books�of�account�[and�with�the�returns�received�from�branches�not�visited�by�us];

� (d).� in�our�opinion,�the�Balance�Sheet,�Statement�of�Profit�and�Loss,�and�Cash�Flow�Statement�comply�with�the�Accounting�Standards�notified�under�the�Companies�Act,1956�(“The�Act”)�(which�continue�to�be�applicable�in�respect�of�Section�133�of�the�Companies�Act,�2013�in�terms�of�General�Circular15/2013�dated�13�September�2013�and�Circular�No.�8/2014�dated�04th�April�2014�of�the�Ministry�of�Corporate�Affairs).

� (e).� on�the�basis�of�written�representations�received�from�the�directors�as�on�31st� �March�2014,�and� taken�on�record�by�the�Board�of�Directors,�none�of�the�directors�is� disqualified� as� on� 31st� � March� 2014,� from� being�appointed�as�a�director�in�terms�of�clause�(g)�of�sub-section�(1)�of�section�274�of�the�Companies�Act,�1956.

For�RJC�Associates� ������������Chartered�Accountants��Firm�Regn.�No.�:�003496S��������������������R.��Jayachandran�Partner� � � ������������������������������������������Membership�No.�021848���

Place:�Coimbatore����Date:�29/05/2014

Report�on�the�Financial�Statements

1.�� We�have�audited�the�accompanying�financial�statements�of�ATS� ELGI� LIMITED� ("the�Company"),�which� comprise� the�Balance�Sheet�as�at�31st��March2014,�and�the�Statement�of�Profit�and�Loss�and�Cash�Flow�Statement�for�the�year�then�ended,�and�a�summary�of�significant�accounting�policies�and�other�explanatory�information,�which�we�have�signed�under�reference�to�this�report.

Management's�Responsibility�for�the�Financial�Statements

2.� The� Company's� Management� is� responsible� for� the�preparation�of�these�financial�statements�that�give�a�true�and� fair� view� of� the� financial� position,� financial�performance� and� cash� flows� of� the� Company� in�accordance�with�the�Accounting�Standards�notified�under�the�Companies�Act,1956�(“The�Act”)�(which�continue�to�be�applicable�in�respect�of�Section�133�of�the�Companies�Act,�2013� in� terms� of� General� Circular15/2013� dated� 13�September�2013�and�Circular�No.�8/2014�dated�04th�April�2014� of� the� Ministry� of� Corporate� Affairs).� This�responsibility� includes� the� design,� implementation� and�maintenance� of� internal� control� relevant� to� the�preparation�and�presentation�of�the�financial�statements�that�give�a�true�and�fair�view�and�are� free�from�material�misstatement,�whether�due�to�fraud�or�error.

Auditor's�Responsibility

3.� Our� responsibility� is� to� express� an� opinion� on� these�financial� statements�based�on�our� audit.�We� conducted�our�audit� in�accordance�with� the�Standards�on�Auditing�issued�by�the�Institute�of�Chartered�Accountants�of�India.�Those� Standards� require� that� we� comply� with� ethical�requirements� and�plan�and�perform� the�audit� to�obtain�reasonable� assurance� about� whether� the� financial�statements�are�free�from�material�misstatement.

4.� An�audit� involves�performing�procedures�to�obtain�audit�evidence� about� the� amounts� and� disclosures� in� the�financial�statements.�The�procedures�selected�depend�on�the�auditor's�judgement,�including�the�assessment�of�the�risks�of�material�misstatement�of�the�financial�statements,�whether� due� to� fraud� or� error.� In� making� those� risk�assessments,� the� auditors� consider� internal� control�relevant� to� the� Company's� preparation� and� fair�presentation�of�the�financial�statements�in�order�to�design�audit� procedures� that� are� appropriate� in� the�circumstances.� An� audit� also� includes� evaluating� the�appropriateness� of� accounting� policies� used� and� the�reasonableness� of� the� accounting� estimates� made� by�management,� as� well� as� evaluating� the� overall�presentation�of�the�financial�statements.

5.� We�believe� that� the�audit� evidence�we�have�obtained� is�sufficient�and�appropriate�to�provide�a�basis�for�our�audit�opinion.

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For�RJC�Associates� ������������Chartered�Accountants��Firm�Regn.�No.�:�003496S��������������������R.��Jayachandran�Partner� � � ������������������������������������������Membership�No.�021848���

On� the� basis� of� such� checks� as� we� considered� appropriate� and�according�to�the�information�and�explanation�given�to�us�during�the�course�of�our�audit,�we�report�that;

�I��� (a)� The� Company� has� maintained� proper� records� showing� full�particulars� including� quantitative� details� and� situation� of�fixed�assets.�

� (b)�� All� the� assets� have� been� physically� verified� by� the�management� during� the� year.� No� material� discrepancies�were�noticed�on�such�verification.

� (c)� No�substantial�part�of�fixed�assets�were�disposed�off�during�the� year,� hence� it� will� not� have� any� effect� on� the� going�concern�assumptions.

II� (a)�� The�inventory�has�been�physically�verified�during�the�period�by� the� management.� In� our� opinion,� the� frequency� of�verification�is��reasonable.

� (b)� � In� our� opinion,� the� procedures� of� physical� verification� of�inventories�followed�by�the�management�are�reasonable�and�adequate� in� relation� to� the� size� of� the� company� and� the�nature�of�its�business.

� (c)�� In� our� opinion� and� on� the� basis� of� our� examination� of� the�records,� the� Company� has� maintained� proper� records� of�inventory� and� no� material� discrepancies� were� noticed� on�physical�verification�of�inventories.

III� The�Company�has�neither�granted�nor�taken�any�loans�secured�or�unsecured�to/from�companies,�firms�or� �other�parties,�which�are� � � � � � �covered� in� the� register� maintained� under� Section� 301� of� the�Companies�Act,�1956�during�the�year.

IV� In�our�opinion�and�according�to�the�information�and�explanations�given� to� us,� there� are� adequate� internal� control� procedures� � � � � � �commensurate�with�the�size�of�the�Company�and�the�nature�of�its�business�with�regard�to�purchases�of�inventory,�fixed�assets�and�with�regard�to�the�sale�of�goods�and�services.��During�the�course�of�our�audit,�we�have�not�observed�any�continuing�failure�to�correct�major�weaknesses�in�internal�control�system.

V� (a)� �According�to�the�information�and�explanations�given�to�us,�we� are� of� the� opinion� that� the� particulars� of� contracts� or�arrangements� that� need� to� be� entered� into� the� register�maintained� under� section� 301� of� the� Companies� Act,1956� �have�been�so�entered.�

� (b)� In� our� opinion� and� according� to� the� information� and�explanations�given�to�us,�the�transactions�made�in�pursuance�of�contracts�or�arrangements�exceeding�rupees�five�lakh�each�have� been� made� at� prices� which� are� reasonable� having�regard�to�prevailing�market�prices�at�the�relevant�time.

VI.�� The� Company� has� not� accepted� any� deposit� s� from� the� public�covered�under�section�58A�and�58AA�of�Companies�Act,�1956�and�the�rules�framed�thereunder.

VII.� In� our� opinion,� the� Company� has� an� internal� audit� system�commensurate�with�the�size�and�nature�of�its�business.�

VIII.� We� have� broadly� reviewed� the� books� of� account� relating� to�materials,� labour� and� other� items� of� cost� maintained� by� the�Company�pursuant�to�the�rules�made�by�the�Central�Government�for�the�maintenance�of�cost�records�under�section�209(1)�(d)�of�the�Companies�Act,�1956�and�we�are�of�the�opinion�that�prima�facie�the� prescribed� accounts� and� records� have� been� made� and�maintained.

IX.� (a)�� According� to� the� information� and� explanation� given� to� us�and� records� examined� by� us,� the� Company� is� regular� in�depositing� with� appropriate� authorities� undisputed�statutory�dues�including�Provident�Fund,� �Employees�State�Insurance,� Income� Tax,� Sales� Tax,� Wealth� Tax,� Service� Tax,�Customs�Duty,�Excise�Duty,�Cess�and�other�material�statutory�dues�applicable�to�it.�

Place:�Coimbatore����Date�:�29/05/2014

X.�� � The�Company�does�not�have�any�accumulated�losses�during�the�period.�The�Company�has�not�incurred�cash�losses�during�the� period� covered� by� our� audit� and� in� the� immediately�preceding�financial�year.

XI.�� � The� Company� has� not� taken� any� loans� from� Financial�Institutions/Banks�or�has�not�issued�any�debentures�during�the�year.�

XII.�� � The�Company�has�not�granted�any�loans�and�advances�on�the�basis�of�security�by�way�of�pledge�of�shares,�debentures�and�other�securities.

XIII.��� The�Company�is�not�a�chit�fund,�nidhi,�mutual�benefit�fund�or�a�society,�therefore�the�provision�of�Para�4(xiii)�of�the�order�are�not�applicable.

XIV.� � In�our�opinion,�the�Company�is�not�dealing�in�or�trading�in�shares,� securities,� debentures� and� other� investments.�Accordingly,�the�provisions�of�clause�4(xiv)�of�the�Companies�(Auditorʼs� Report)� Order,� 2003� and� Companies� (Auditorʼs�Report)�(Amendment)�Order�2004�are�not�applicable�to�the�Company.�

XV.�� � In�our�opinion,�the�Company�has�not�given�any�guarantee�for�any� loans� taken� by� any� other� Companies� from� Banks� or�Financial�Institutions.

XVI.��� The�Company�has�not�obtained�any�long�term�loan�during�the�year�under�audit.�

XVII.�� According�to�the�information�and�explanations�given�to�us�and�on�an�overall�examination�of�the�Balance�Sheet�of�the�Company,� as� at� 31st� march� 2014� we� report� that� no� funds�raised� on� short-term� basis� have� been� used� for� long-term�investment�by�the�Company.

XVIII.� The�Company�has�not�made�any�preferential�allotments�of�shares�to�the�parties�and�companies�covered�in�the��register� � � � � � � � � � �maintained�under�Section�301�of�the�Companies�Act,�1956�

XIX.��� The�Company�has�not�issued�any�debentures�during�the�year�under�audit.�

XX.�� � The�Company�has�not�raised�any�money�by�way�of�public�issue,�during�the�year.�

XXI.��� To�the�best�of�our�knowledge�and�belief�and�according�to�the�information�and�explanation�given�to�us,�no�material�fraud�on�or�by�the�Company,�was�noticed�or�reported�during�the�year,�nor� have� we� been� informed� of� any� such� case� by� the�management.

� (b)��� According�to�the�information�and�explanation�given�to�us,�no�undisputed�amounts�payable�in�respect�of�Provident�Fund,�Employees�State�Insurance,�Income�Tax,�Wealth�Tax,�Service�Tax,�Sales�Tax,�Customs�Duty,�Excise�Duty�and�Cess�were�in�arrears,�as�at�31st��March�2014�for�a�period�of�more�than�six�months�from�the�date�they�became�payable.�

� (c)��� Disputed� Sales� Tax� aggregating� `.� 13.36� million� have� not�been� deposited� since� matters� are� pending� with� relevant�forum�as�indicated�below:

��The�Annexure�referred�to�in�paragraph�7�of��our�Report�of�even�date�to�the�members�of�ATS�Elgi�Limited�on�the�accounts�of�the�Company�for�the�year�ended��31st�March,�2014.

� � � �����������(`.In�Million)

Name�of�the�� Nature�of�� Demand� Forum�whereStatute� the�dues� �Amount� dispute�is�pending

Sales�Tax� CST�� 23.68� Sales�Tax�Appellate�DC� � � Coimbatore

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� ��������������������������������For�and�on�behalf�of�the�Board�������������������������� ���������������������������������������"As�per�our�report�of�even�date”� � � � � � �JAIRAM�VARADARAJ�� � RAMESH�PONNUSWAMI� For�RJC�ASSOCIATESChairman� � � Managing�Director������ Chartered�Accountants�� � � � � � Firm�Regn.No.:003496S

Place��:�Coimbatore� � � R.�JAYACHANDRAN�Date���:�29/05/2014������� � � Partner��� � ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No.�021848

Balance�Sheet�as�at�31st�March,�2014 [�`.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13� � � � � � �� I.� EQUITY�AND�LIABILITIES� � �� � � � �� (1)� SHAREHOLDER'S�FUNDS� � �� � (a)�Share�Capital� � 2� � �0.900�� � �0.900�� � (b)�Reserves�and�Surplus� � 3� � �615.967� �� 595.208� � � � �� (3)� NON-CURRENT�LIABILITIES� � �� � (a)�Deferred�tax�liabilities�(Net)� � 4� � �13.688� � �3.272�� � � � �� (4)� CURRENT�LIABILITIES� � �� � (a)�Trade�payables� � 5� � 150.860� � �190.535�� � (b)�Other�current�liabilities� � 6� � �31.781� � �27.003� � (c)�Short-term�provisions� � 7� � 96.073�� �� 71.436�

� � Total� � � � �909.269� � �888.354

� II.� ASSETS� � �� (1)� NON-CURRENT�ASSETS� � �� � (a)�Fixed�assets� � �� � �����(i)�Tangible�assets� � 8� � �138.924�� � �49.160� � �����(ii)�Intangible�assets� � 8� � �-���� � �-���� � �����(iii)�Capital�work-in-progress� � � � �12.623�� � �5.935� � (b)�Long�term�loans�and�advances� � 9� � �5.087� � �77.435�� (2)� CURRENT�ASSETS� � �� � (a)�Inventories� � 10� � �114.565�� � �121.004�� � (b)�Trade�receivables� � 11� � �239.159� � �229.795� � (c)�Cash�and�cash�equivalents� � 12� � �301.561� � �300.087� � (d)�Short-term�loans�and�advances� � 13� � 86.550� � �97.318�� � (e)�Other�current�assets� � 14� � 10.800� � �7.620

� � Total� � � � �909.269� � �888.354�

� � � �� The�accompanying�notes�are�an�integral�part�of�the�financial�statements.

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Statement�of�Profit�and�Loss�for�the�year�ended�31st�March,�2014 [�`.�In�Million]

� �Particulars�� �Note�No.� �� 31-03-14� �� 31-03-13

� � � � � � �� I.� REVENUE�FROM�OPERATIONS� � 15� �� 1,255.375�� � �1,439.809��� II.� OTHER�INCOME� � 16� �� 25.532� � �27.459�

� III.� TOTAL�REVENUE�� (I�+II)� � �� 1,280.907�� � �1,467.268�

� IV.� EXPENSES:� � 17� �� 582.364� � �666.616� � Purchase�of�Traded�goods� � 18� � �217.086� � �278.994�� � Changes�in�inventories�of�finished�goods,�� � 19� � �7.155� � �(21.461)� � work-in-progress�and�Traded�goods� � � �� � Employee�benefit�expenses� � 20� � �157.114� � �146.212� � Depreciation�and�amortization�expenses� � � � �10.063� �� 6.159� � Other�expenses� � 21� �� 198.679� � �212.278�

� � TOTAL�EXPENDITURE� � � � �1,172.460� � �1,288.797�� � � � �� V.� PROFIT�BEFORE�EXCEPTIONAL�AND�� � EXTRAORDINARY�ITEMS�AND�TAX� (III�-�IV)� �� � 108.447� � �178.471�

� VI.� EXCEPTIONAL�ITEMS�� � � � �-���� � �-���� � � � �� VII.� PROFIT�BEFORE�EXTRAORDINARY�ITEMS�AND�TAX� (V-VI)� � � �108.447� � �178.471�� � � � �� VIII.� EXTRAORDINARY�ITEMS�� � � � �-���� � �-���� � � � �� IX.� PROFIT�BEFORE�TAX� (VII�-�VIII)� �� � 108.447� � �178.471�

� X.� TAX�EXPENSE:� � �� � �(1)�Current�Tax� � � � �19.357� � �50.968� � �(2)�Deferred�Tax� � � � �10.417� � �4.464�

� XI.� PROFIT(LOSS)�FOR�THE�YEAR�FROM� � CONTINUING�OPERATIONS� (IX�-�X)� � � �78.674� � �123.039�

� XII.� PROFIT/(LOSS)�FROM�DISCONTINUING�OPERATIONS� � � � �-���� � �-����� XIII.� TAX�EXPENSE�OF�DISCONTINUING�OPERATIONS� � � � �-���� � �-����� XIV.� PROFIT/(LOSS)�FROM�DISCONTINUING� � OPERATIONS�(AFTER�TAX)� (XII�-�XIII)� � � �-���� � �-���� � � � �� XV.� PROFIT/(LOSS)�FOR�THE�YEAR� (XI+XIV)� � � �78.674� � �123.039�� � � � �� XVI.� EARNING�PER�EQUITY�SHARE:� � � � �(in�`.)�� � �(in�`.)�� � Nominal�value�of�share� � � � �10.00� � �10.00� � �������(1)�Basic� � � � �874.16� � �1,367.10�� � �������(2)�Diluted

� � � � �-���� � �-���� The�accompanying�notes�are�an�integral�part�of�the�financial�statements.� � � �

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� ��������������������������������For�and�on�behalf�of�the�Board�������������������������� ���������������������������������������"As�per�our�report�of�even�date”� � � � � � �JAIRAM�VARADARAJ�� � RAMESH�PONNUSWAMI� For�RJC�ASSOCIATESChairman� � � Managing�Director������ Chartered�Accountants�� � � � � � Firm�Regn.No.:003496S

Place��:�Coimbatore� � � R.�JAYACHANDRAN�Date���:�29/05/2014������� � � Partner��� � ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No.�021848

75

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Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014

1.���Summary�of�Significant�Accounting�Policies�

1.1�Basis�for�preparation�of�Financial�Statements

The� Company� follows� accrual� method� of� Accounting.� The�financial�statements�have�been�prepared�under�the�Historical�Cost�Convention�and�on� the�basis�of�going�concern�and� in�accordance�with�the�Accounting�Standards�notified�under�the�Companies�Act,�1956�("The�Act").

1.2�Inventories

Inventories�have�been�valued�at�lower�of�cost�or�net�realisable�value.� The� cost� of� inventories� has� been� assigned� using� the�weighted�average�cost�formula.�

a)�� Purchased�items� -� at�FIFO��Net�of�CENVAT�and�VAT�

b)�� Work-in-progress� -� purchase�cost�net�of�CENVAT�� � � � � � and�VAT�plus�proportionate�� � � � � � overheads�

c)�� Manufactured�items�� -� at�cost�excluding�selling�� at�Factory�� �� � overheads�and�VAT�

d)� Traded�items� -� at�cost�and�net�of�VAT�

e)�� Inventory�items�at� -� at�cost�including�applicable� Branches/�Foreign� � taxes�and�duties.�� Branches

1.3��Depreciation�� �

Depreciation� is� charged� on� Straight� line� basis� for� Plant� &�Machinery,� Vehicles� and� Computers� and� on� Written� Down�Value�basis�for�other�assets.� �Rates�prescribed�under�Schedule�XIV� of� the� Companies� Act,� 1956� are� adopted� except� for�Computers�which�are�depreciated�over�a�period�of�3�years�at�the�rate�of�33.33%�per�annum.�

1.4�Revenue�recognition

Sales:��

Sales,� which� includes� excise� duty,� but� excludes� VAT� is�recognised�at�the�time�of�shipment�of�goods�from�plant�or�from�stock�points.

Interest:�

Interest� is� recognised� on� accrual� basis� on� a� time� proportion�basis�taking�into�account�the�amount�outstanding�and�the�rate�applicable.

1.5��Fixed�Assets� �

a)�� Fixed�assets�are�recorded�at�historical�cost�of�acquisition,�which�includes�all�taxes,�duties�and�other�direct�expenses�incurred�upto�the�stage�of�commissioning�of�the�asset,�net�of�CENVAT�and�VAT,�wherever�applicable

b)� Capital� work� in� progress� consisting� of� assets� under�construction,� erection� and� commissioning� are� valued� at�cost�incurred�upto�the�date�of�Balance�Sheet.

c)�� An� asset� is� considered� as� impaired� in� accordance� with�Accounting�Standard�28�on��“Impairment�of�Assets”,�when�at�balance�sheet�date�there�are�indications�of�impairment�on�the�carrying�amount�of�the�asset,�or�where�applicable�the� cash� generating� unit� to� which� the� asset� belongs,�exceeds� its� recoverable� amount� (i.e.� the� higher� of� the�assetʼs� net� selling� price� and� value� in� use� )� ,� the� carrying�amount� is� reduced� to� the� recoverable� amount� and� the�reduction�is�recognized�as�an�impairment�loss�in�the�Profit�and�Loss�Account.

1.6��Foreign�Currency�Transactions

Transactions�in�foreign�currency�are�recorded�at�exchange�rate�prevailing� on� the� date� of� the� transaction.� For� transactions�settled�within�the�year,�exchange�variance�is�charged�to�Profit�and� Loss� account.� Outstanding� liabilities� and� assets� are�restated�at�exchange�rate�prevailing�at�the�end�of�the�year.�The�resultant� exchange� variances� are� accounted� as� income� or�expenses�on�a�net-off�basis.

1.7�Employee�Benefits�

a)����Provident�Fund:��Provident�Fund�contribution�is�as�per�the�rates� prescribed� by� the� Employees� Provident� Fund� Act�1 9 5 2 � a n d � t h e � s a m e � i s � c h a r g e d � t o � r e v e n u e �account.�

b)����Superannuation:��The�Company�has�an�arrangement�with�Life� Insurance� Corporation� of� India� for� providing�Superannuation� benefits� to� employees� eligible� as� per�Companyʼs� Rules.� Companyʼs� contribution� to� the�Superannuation� Fund� is� calculated� as� per� agreed� terms�and�provided�for�in�the�accounts.

c)�� Leave� Salary� :� Liability� in� respect� of� encashment� of�accumulated� leave� is� provided� based� on� actuarial�valuation.�

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d)����Gratuity�:��The�Company�operates�a�defined�benefit�plan�for�the�payment�of�post�employment�benefits�for�its�employees�in�the�form�of�gratuity�fund�scheme�managed�by�Life�Insurance�Corporation�of�India.�The�expense�is�recognized�based�on�the�present�value�of�obligation�determined�in�accordance�with�AS-15�(R)�on�“Employee�Benefits”.

e)� Other�Short�term�employee�benefits�:�All�the�other�short�term�employee�benefits�such�as�profit�share,�performance�pay�etc,�are�measured�and�provided�on�accrual�basis.

1.8���Borrowing�Cost

Borrowing�cost�includes:�

a)� Interest� and� Commitment� charges� on� bank� borrowings�and�other�short�term�and�long�term�borrowings.

b)� Amortization�of�ancillary�costs�incurred�in�connection�with�the�arrangement�of�borrowings.

c)� Finance� charges� in� respect� of� assets� acquired� under�finance�leases�or�under�other�similar�arrangements.

d)� Exchange� differences� arising� from� foreign� currency�borrowings� to� the� extent� that� they� are� regarded� as� an�adjustment�to�interest�costs.

1.9��Deferred�Tax�

Deferred�Tax�liabilities�/�assets�are�accounted�for�in�respect�of�all�timing�differences,�as�per�AS-22�

Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014

1.10�Research�&�Development�Expenses:

Revenue� expenditure� on� Research� and� Development� are�charged�off�in�the�year�in�which�they�are�incurred.

Fixed� Assets� purchased� for� the� purpose� of� research� and�development� are� depreciated� as� per� the� Company's� policy�stated�above.

1.11��Intangible�Assets�

Intangible�Assets�are�recorded�at�the�cost�of�acquisition�and�are�amortized� over� a� period� of� five� years� or� its� legal/� useful� life�whichever�is�less.

1.12 Provisions,�Contingent�Liabilities�&�Contingent�Assets

Provisions� are� recognized� at� the� best� estimate� of� the�expenditure� required� to� settle� the�present�obligation�at� the�balance�sheet�date.

Contingent� liabilities� do� not� warrant� provisions,� but� are�disclosed� unless� the� possibility� of� outflow� of� resources� is�remote.��

Contingent�assets�are�neither�recognized�nor�disclosed�in�the�financial�statements.

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� �Particulars�� � � �� 31-03-14� �� 31-03-13

� 2� SHARE�CAPITAL� � �� � AUTHORISED�SHARE�CAPITAL:� � �� � 1,00,000�Equity�Shares�of��`10/-�each� � � � �1.000� � �1.000�� � � � �� � ISSUED,�SUBSCRIBED�AND�FULLY�PAID-UP�SHARES.� � �� � 90000�Equity�Shares�of�`10/-�each�fully�paid� � � � �0.900�� � �0.900�� � � � �� � Total�Issued,�subscribed�and�fully�paid-up�share�capital� � � �0.900�� � �0.900�

� � � � �� 2.1� Note:� � �� � i.�� Terms�/�Rights�attached�to�Equity�Shares.� � �

� � � Company�has�one�class�of�equity�shares�having�a�par�value�of� ̀ .�10/-�per�share.�Each�shareholder�is�eligible�for�one�vote�

per�share�held.�The�dividend�proposed�by�the�Board�of�Directors�is�subject�to�the�approval�of�the�shareholders�in�the�

ensuing�Annual�General�Meeting,�except�in�case�of�interim�dividend.�In�the�event�of�liquidation,�the�equity�shareholders�

are�eligible�to�receive�the�remaining�assets�of�the�Company�after�distribution�of�all�preferential�amounts,�in�proportion�

to� their� shareholding.� During� the� year� ended� March� 31,� 2014,� the� amount� of� dividend� per� share� � recognized� as�

distributions�to�equity�shareholders�is ̀ �550/-�(March�31,�2013:� ̀ �.�0/-).��� �

�� � � �� 2.2� Reconcilation�of�the�shares�at�the�beginning�and�at�the�end�of�the�reporting�period:� � �� � Particulars� � � � �31-03-2014�� �� 31-03-2013�� � � � �

� � Number�of�equity�shares�at�the�beginning�of�the�year�(No.�in�Million)� � 0.090� � �0.090

� � Add:� � � � �� ����

� � ESPS� � � � � �-���� � �-���

� � Partly�paid�up�shares�that�became�fully�paidup�on�receipt�of�final�call�money� � �����-� � -��

� � Bonus�issue� � � � �-���� � �-����

� � Number�of�equity�shares�at�the�end�of�the�year��(No.�in�Million)� � 0.090� � �0.090����

� � � � ��� 2.3� Number�of�shares�held�by�share�holders�holding�more�than�5%�of�total�shares� � �� � Name�of�the�share�holder� 3� 1-03-2014� �%�� �� 31-03-2013�� �%�

� � ELGI�EQUIPMENTS�LTD� � �90,000�� 100%� � �90,000�� 100%� � � � �� �

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� �Particulars�� � � �� 31-03-14� �� 31-03-13

� 3� RESERVES�AND�SURPLUS� �� �� � A)� Securities�Premium�Account� � � � 180.000�� � �180.000����� � B)� General�Reserve� � � � �� � � As�per�the�last�Balance�Sheet� � � � �2.000�� � �2.000��� � � Add:�transfer�from�profit�&�loss�account� � � � 7.867� � -� � � � � � � � 9.867� � 2.000� � C)� Surplus�From�Profit�&�Loss�Account� � � � � � �� � � As�Per�The�Last�Balance�Sheet� � � � �413.208�� � �290.168� � � Add:�Current�Year�Surplus� � � � �78.674�� � �123.039

� � � � � � � � �491.882�� � �413.208� � � Less:�Proposed�dividend�� � � � 49.500���� � �-���� � � Less:�Provision�for�tax�on�dividend� � � � 8.415� � �-���� � � Less:�Transfer�to�general�reserve� � � � 7.867� � �-���� � � � � � � � 426.100� � 413.208� � � � � � � �� � Closing�Balance�(a+b+c+d+e+f)� � � � �615.967�� � �595.208

� 4� DEFERRED�TAX�LIABILITIES� �� � a)� As�per�the�last�Balance�Sheet� � � � �3.272� � �(1.192)� � � Add:��For�the�Year� � � � �10.417�� �� 4.464�

� � � � � � � �13.688� � �3.272�

�� 5� TRADE�PAYABLE� �� � a)� Acceptances� � � � �36.383� � �39.512�� � b)� Dues�to�Micro,�small�and�Medium�Enterprises� � � � �29.741� � �27.245� � c)� Others� � � � �84.735� � �116.500�

� � � � � � � �150.860� � �190.535�

� 6� OTHER�CURRENT�LIABILITIES� � ��� � Other�payables� � �� � i� Advance�from�customers� � � � �12.574�� � �10.898� � ii� Dealers�Deposits���������������� � � � �6.540� � �6.281�� � iii� Employee�related�expenses�payable� � � � �3.638� � �2.181�� � iv� TDS�Payable�/�Other�Taxes�Payable� � � � �9.028�� � �7.643�

� � � � � � � � �31.781�� � �27.003�

� 7� SHORT�TERM�PROVISIONS� �� � a)� Provisions�for�employee�benefits� � �� � 18.800�� � �20.468�� � b)� Provision�for�income�tax� � � � �19.357�� �� 50.968�� � c)� Proposed�dividend� � � � �49.500��� � �-���� � d)� Provision�for�dividend�tax� � � � �8.413��� � �-���

� � �� � � � � �96.073� �� 71.436�

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

80

[ `.�In�Million]8��TANGIBLE�&�INTANGIBLE�ASSETS

Gross�Block� � � � � �

Balance�as�at�1�April�2012� �1.504�� �52.865�� �6.781�� �61.150�� �3.341�� �64.491�

Additions� �1.846�� �7.497�� �0.757�� �10.100�� �-���� �10.100�

Deletions�/�write�off� �-���� �0.586�� �-���� �0.586�� �-���� �0.586�

Balance�as�at�31�March�2013� �3.350�� �59.777�� �7.539�� �70.665�� �3.341�� �74.006�

Additions� �3.300�� �97.134�� �1.467�� �101.901�� �-���� �101.901�

Deletions�/�write�off� �-���� �2.913�� �-���� �2.913�� �-���� �2.913�

Balance�as�at�31�March�2014� �6.649�� �153.998�� �9.006�� �169.653�� �3.341�� �172.994�

Accumulated�depreciation� � � � � � �-���

Balance�as�at�1�April�2012� �0.318�� �11.987�� �3.325�� �15.629�� �3.087�� �18.716�

For�the�year� �0.192�� �5.003�� �0.709�� �5.905�� �0.254�� �6.159�

Deletions�/�write�off� �-���� �0.029�� �-���� �0.029�� �-���� �0.029�

Balance�as�at�31�March�2013� �0.510�� �16.961�� �4.034�� �21.505�� �3.341�� �24.846�

For�the�year� �0.483�� �8.741�� �0.838�� �10.063�� �-���� �10.063�

Deletions�/�write�off� �-���� �0.838�� �-���� �0.838�� �-���� �0.838�

Balance�as�at�31�March�2014� �0.993�� �24.864�� �4.872�� �30.729�� �3.341�� �34.070�

Net�Block� � � � � � ��

31st�March�2013� �2.839�� �42.816�� �3.505�� �49.160�� �-���� �49.160�

31st�March�2014� �5.656�� �129.134�� �4.133�� �138.924�� �-���� �138.924�

Particulars BuildingPlant�&

Machinery

Furniture&�Office

EquipmentsTotal Total

� 9� LONG�TERM�LOANS�AND�ADVANCES� �

� � a)� Capital�Advances� � � � �-���� �� 74.039�

� � b)� Security�deposits� � � � 3.187�� �� 1.688�

� � c)� Other�loans�&�advances� � � � 1.900�� �� 1.709�

� � � � � � � �5.087�� �� 77.435�

� � All�Loans�and�advances�are�unsecured�and�considered�good.

[�`.�In�Million]

� �Particulars�� � � �� 31-03-14� �� 31-03-13�

IntangibleAssets

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� �Particulars�� � � �� � 31-03-14� �� 31-03-13

� 10� INVENTORIES� �

� � a)� Raw�materials� � �� � 43.408�� � �43.296�

� � b)� Work�in�progress� � � � �6.834� � �10.037

� � c)� Finished�goods� � � � �26.494� � �32.741�

� � d)� Traded�goods� � � � �34.666� � �32.370

� � e)� Stores�&�Spares� � � � �0.189�� �� 0.094

� � f)� Loose�Tools� � � � �2.368� � �2.291�

� � g)� Packing�materials� � � � �0.605� �� 0.175�

� � � � � � � � � �114.565� � �121.004

� � Note�:�Raw�materials�inventory�include�R�&�D�Inventory�also

� 11� TRADE�RECEIVABLES� � a)� Trade�receivables�outstanding�for�more�than�6�months� � � �� � � from�the�date�they�became�due�for�payment� � � � 11.518� � �12.064

� � b)� Others�� �� � � 227.641�� �� 217.731�

� � � � �� � � � � 239.159� �� 229.795�

� � All�trade�receivables�are�unsecured�and�considered�good.�

� 12� CASH�AND�BANK�BALANCES� �

� � a)� Cash�and�cash�equivalents� � �

� � � i)� Balance�with�banks� � �

� � � � a)� In�current�account� � � � �71.150� � �45.407�

� � � � b)� In�deposits� � � � �230.315� �� 174.604

� � � �ii)� Cash�in�hand� � � � �0.096�� � �0.076

� � b)� Other�Bank�Balances� � �

� � � In�deposits�(having�original�maturity�year�of�� � � more�than�3�months�but�less�than�12�months)� � � �-���� � �80.000

� � � �� � � � � � 301.561� � �300.087�

� 13� SHORT-TERM�LOANS�AND�ADVANCES� � a)� Advances�to�Suppliers� � �� � 17.222�� � �7.811�

� � b)� Employee�advances� � � � �4.613�� � �3.196�

� � c)� Cenvat�/�VAT�Receivable�&�Service�Tax�credit��(Net)� � � 17.992� �� 10.236

� � d)� Advance�Tax�/�TDS�Receivable� � � � �24.717�� � �56.506�

� � e)� Income�/�refund�receivable� � �� � 2.302�� � 1.269���

� � f)� Prepaid�expenses� � � � �1.552� � �0.147�

� � g)� Others�� �� � � 18.152� �� 18.152

� � � � �� � � � � 86.550�� �� 97.318�

� � All�Loans�and�advances�are�unsecured�and�considered�good.� � �

� � � � �

� 14� OTHER�CURRENT�ASSETS� � Interest�accrued� � � � �10.800�� � 7.620�

� � � � � � � 10.800�� �� 7.620

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� �Particulars�� � � �� � 31-03-14� �� 31-03-13

� 15� REVENUE�FROM�OPERATIONS� �� � a)� Sale�of�Products� � �� � 1,311.332�� �� 1,509.938�� � b)� Sale�of�Services� � � � �29.052� � 24.526�� � � Gross�Sales� � � � �1,340.384� �� 1,534.463�� � � Less:�� � �� � c)� Excise�Duty�� � � � �85.184�� �� 94.654�� � � Net�Sales� � �� � 1,255.200� �� 1,439.809�� � d)� Other�operating�revenue� � � � �0.175� � �-���� ������������������������������ � � � �1,255.375� �� 1,439.809�� 15.1�DETAILS�OF�PRODUCTS�SOLD� � a)� Automotive�Equipments� � � � 1,226.148� � �1,415.284�� �� 16� OTHER�INCOME� �� � a)� Interest�Income� � � � �26.228�� � �26.182�� � b)� Profit�on�sale/loss�of�assets�(Net)� � � � �(1.500)� � �0.693��� � c)� Miscellaneous�income� � � � �0.804�� � 0.584� � � � �� � � � � 25.532�� � 27.459� 17� COST�OF�MATERIALS�CONSUMED� �� � Opening�Stock�of�Raw�Materials� � � � �41.225�� �� 30.386�� � Purchases�� � � �� 582.989� �� 677.455� � � � � � � � � �624.213� � �707.841�� � Less:�Closing�Stock�of�Raw�Materials� � � � �41.850�� � �41.225� � � � � � � � � �582.364�� � �666.616� 17.1�Purchases�include�machining�charges�of�� � `.16.52�Million�(Previous�year�`.17.14�Million)� � �� � � � �� 17.2�DETAILS�OF�MATERIALS�CONSUMED� � �� � 1)� Sheets,�Plates�&�H�Section� � �� � 120.423� � 49.972� � 2)� Materials�that�do�not�individually�account�for�� � � 10%�or�more�of�total�consumption� � � � �461.941� � 616.644� � � � �� � � � � 582.364� �� 666.616� 18� PURCHASE�OF�TRADED�GOODS� � �� � 1)� AUTOMOTIVE�GARAGE�EQUIPEMENTS� � �� � 217.086� � �278.994�� � � � � � � � � �� � � � �� 19� CHANGES�IN�INVENTORIES�OF�FINISHED�GOODS,� � WORK-IN-PROGRESS�AND�TRADED�GOODS� � Opening�Stock�of�WIP� � � � �10.037� �� 7.721� � Opening�Stock�of�Finished�Goods� � � � �32.741� � �16.271� � Opening�Stock�of�Traded�goods� � � � 32.371���� �� 29.696� � � � �� � � � � 75.149� �� 53.688� � Closing�Stock�of�WIP� � � � 6.834� �� 10.037� � Closing�Stock�of�Finished�Goods� � �� � 3.554� �� 32.741� � Closing�Stock�of�Traded�goods� � � � 57.606� � �32.371��� � � � �� � � � � 67.994� � �75.149� � � � �� � � � � 7.155�� � �(21.461)

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Notes�to�Financial�Statements�for�the�year�ended31st�March,�2014 [�`.�In�Million]

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

� �Particulars�� � � �� � 31-03-14� �� 31-03-13

� 20� EMPLOYEE�BENEFIT�EXPENSES� �� � Salaries�&�Wages� � � � �120.945�� � �110.678�� � Gratuity� � � � � 1.269�� � �-���� � Performance�Pay� � �� � 11.659� �� 14.254�� � Contribution�to�Providend�fund�&�Superannuation�fund� � � �7.924�� � �7.329� � Welfare�expenses� � � � �10.657�� � �9.533�� � MD's�Remuneration�(Excluding�performance�pay)� � � �4.658�� �� 4.419�

� � � � � � � � � �157.114�� � �146.212

� 21� OTHER�EXPENSES� �� � Packing�Charges� � � � �27.001� � �31.754� � Consumption�of�Stores� � � � �5.776�� � �6.155� � Tools�Consumed� � � � �7.550�� � �9.517� � Commission�and�Discount����� � �� � 24.354� � �29.632� � Power,�Fuel�&�Lighting� � � � �7.007�� � �7.069� � Transport�Charges� � � � �11.854� �� 15.874� � Postage,�Telegrams�&�Telephones� � � � �2.702� � �2.656� � Travelling�and�Conveyance� � � � �28.543� � 30.154� � Insurance�� � � � �0.844� � �0.788�� � Advertisement�and�Publicity� � � � �4.153� �� 1.742� � Repairs�and�Maintenance�of� � �� � �����������-Plant�and�machinery� � � � �2.394� � �2.087� � �����������-Building� � � � �2.892�� �� 2.820� � �����������-Other�Assets� � � � �2.604�� � �2.477�� � Printing�and�Stationery� � � � 2.113�� � �1.819� � Research�and�Development�expenses�� � � � �6.502�� � �3.398� � Bad�Debts�Written�off� � �� � 2.405�� � �0.347�� � After�Sales�Expenses� � � � �23.393� � �24.170�� � Factory�Expenses� � � � �0.207�� � �0.398� � Rates�&�Tax� � � � �0.059� � �0.152� � Auditor's�Remuneration� � �� � �����-Audit�Fees� � � � �0.350�� �� 0.350�� � �����-Other�Services� � � � �0.135� �� 0.028�� � Miscellaneous�Expenses� � � � �16.088�� � �15.370� � Subscription,Periodicals�&�Filing�Fees��� � �� � 0.056� �� 0.052� � Donations�� � � � �-���� � �0.003�� � Rent� � � � � � �5.192� � �2.745� � Legal�and�Consultancy�Charges� � � � �10.480�� � �10.326�� � Directors'�Sitting�Fees� � �� � 0.060� � �0.055�� � Sales�Tax�Payments� � � � �0.508�� �� 0.304�� � Exchange�Fluctuation�(Gain)�/�Loss�(net)� � � � �0.875� � �4.704�� � Excise�Duty�paid� � � � �1.345�� � �3.567� � Bank�charges� � � � �1.235�� � �1.765�

� � � � �� � � � � 198.679�� � �212.278�

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Notes�to�Financial�Statements�for�the�year�ended�31st�March,�201422� Contingent�Liabilities�and�Commitments� � � � � �� a)� Claims�against�the�company�not�acknowledged�as�debts:� � � �� � � � � � �� Name�of�the�Statute� Nature�of�the� � Demand� Amount� � Forum�where� � � � � dues� �� Amount�� Paid/�Adj.��������������������dispute�is�pending� � � � � � �(`.�In�Million)� (`.�In�Million)�

� Sales�Tax� � CST�� � 23.68� 13.36� � Sales�Tax� � � � � � � � � � Appellate�DC,�� � � � � � � � � � Coimbatore�� The�company�has�filed�appeals�with�appropriate�authorities�of�Sales-tax�department�against�their�claims

� � � � � �� Particulars�� � � � 31/03/14� � 31-03-13�� � � � � � � � (`.�In�Million)� � (`.�In�Million)��� b)�� Guarantees�and�Letter�of�credit� � � � 21.541� � � 30.187� � �� � � � � � �

23� Details�of�estimated�amount�of�contracts�� � � � �

� Particulars�� � � � 31-03-14� 31-03-13� � � � � � � � (`.�In�Million)� (`.�In�Million)� � �� Estimated�amount�of�contracts�remaining�to�be�executed�on�capital�account� � 9.430� 74.039�� �� � � � � � �

24� Details�of�dues�to�Micro,�Small�and�Medium�Enterprise�under�the�Micro,���Small�and�Medium�Enterprise�Development�� Act�2006.� � � � � ��� Particulars�� � � Section� 31-03-14� � 31-03-13�� � � � � � � � (`.�In�Million)� � (`.�In�Million)����������������

� a)� The�Principal�amount�due�to�Supplier�under�the�Act.� � S�22�(i)� 29.741� � 27.245�

� b)� Interest�accrued�and�due�to�Suppliers�on�the�above�amount� S�22�(i)� Nil� � Nil����� � (Other�than�Section�16)� � � � � �

� c)� Interest�paid�to�Suppliers�under�the�act(Section�16)� � S�22�(ii)� Nil� � Nil���

� d)� Interest�due�and�payable�for�delay�(for�payments�during�the�� S�22�(iii)� Nil� � Nil������� � year�beyond�due�date)� � � � � �

� e)� Payment�made�to�suppliers�(other�than�interest)�beyond�the�� S�22�(iii)� Nil� � Nil������ � appointed�day,�during�the�year.� � � � � �

� f )� Interest�accrued�&�remaining�unpaid�at�the�end�of�year�to�� � S�22�(iv)� Nil� � Nil������ � Suppliers�under�the�Act� � � � � �

� g)� Interest�due�&�payable�to�suppliers�under�the�Act�for�� � S�22�(v)� Nil� � Nil������ � payments�already�made

� � � � � �

� � The�information�has�been�given�in�respect�of�vendors�to�the�extent�they�could�be�identified�as�"Micro��and�Small�enterprises"�� � on�the�basis�of�information�available�with�the�company.

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

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25� Details�of�disclosure�as�required�under�AS15�in�respect�of�defined�benefit�plan�(�Gratuity�)

� � � � � � � � � � (`.�In�Million)

� � � � � � � � 31-03-14� � 31-03-13�� � � � � � � ��������������������������������Gratuity�(Funded)�� � � � � � � � ��� I� PRINCIPAL�ACTUARIAL�ASSUMPTIONS� � � � � �� � [Expressed�as�weighted�averages]� � � � �� � � � � � �� � Discount�Rate� � � � 9.20%� � 8.20%�� � Salary�escalation�Rate� � � � 6.50%� � 6.00%�� � Attrition�rate� � � � 3.00%� � 3.00%�� � Expected�rate�of�return�on�Plan�Assets� � � � 8.75%� � 9.25%�� � In�the�following�tables,�all�amounts�are�in�Rupees,�� � � � �� � unless�otherwise�stated� � � � � �� � � � � � �� II� CHANGES�IN�THE�PRESENT�VALUE�OF�THE�OBLIGATION�(PVO)�-� � � � ��� � RECONCILIATION�OF�OPENING�AND�CLOSING�BALANCES:� � � � � �� � PVO�as�at�the�beginning�of�the�period� � � � 7.992� � 9.331�� � Interest�Cost� � � � 0.639� � 0.805�� � Current�service�cost� � � � 1.306� � 1.161�� � Past�service�cost�-�(non�vested�benefits)� � � � -� � -����� � Past�service�cost�-�(vested�benefits)� ���������������� � � ����-�� ������������ ��������-������ � Benefits�paid� � � � (0.392)� � (0.158)�� � Actuarial�loss/(gain)�on�obligation�(balancing�figure)� � � 0.973� � (3.145)�� � PVO�as�at�the�end�of�the�period� � � � 10.520� � 7.993�� � � � � � �� III� CHANGES�IN�THE�FAIR�VALUE�OF�PLAN�ASSETS�-��� � � � �� � RECONCILIATION�OF�OPENING�AND�CLOSING�BALANCES:� � � � � �� � Fair�value�of�plan�assets�as�at�the�beginning�of�the�period� � � 18.931� � 14.825�� � Expected�return�on�plan�assets� � � � 1.733� � 1.474�� � Contributions� � � � -� � 2.734�� � Benefits�paid� � � � (0.392)� � (0.158)�� � Actuarial�gain/(loss)�on�plan�assets�[balancing�figure]� � � (0.082)� � 0.058�� � Fair�value�of�plan�assets�as�at�the�end�of�the�period� � � 20.189� � 18.932�� � � � � � �� IV� ACTUAL�RETURN�ON�PLAN�ASSETS� � � � � �� � Expected�return�on�plan�assets� � � � 1.733� � 1.474�� � Actuarial�gain�(loss)�on�plan�assets� � � � (0.085)� � 0.058�� � Actual�return�on�plan�assets� � � � 1.650� � 1.532�� � � � � � �� V� ACTUARIAL�GAIN�/�LOSS�RECOGNISED� � � � � �� � Actuarial�gain�/�(loss)�for�the�period�-�Obligation� � � � (0.973)� � 3.145�� � Actuarial�gain�/�(loss)�for�the�period�-�Plan�Assets� � � � (0.082)� � 0.058�� � Total�(gain)�/�loss�for�the�period� � � � 1.056� � (3.203)�� � Actuarial�(gain)�/�loss�recognized�in�the�period� � � � 1.056� � (3.203)�� � Unrecognised�actuarial�(gain)�/�loss�at�the�end�of�the�year� � � -� � -����� � � � � � �� VI� AMOUNTS�RECOGNISED�IN�THE�BALANCE�SHEET�AND�RELATED�ANALYSES� � � � ��� � Present�value�of�the�obligation� � � � 10.520� � 7.993�� � Fair�value�of�plan�assets� � � � 20.189� � 18.932�� � Difference� � � � 9.669� � (10.939)�� � Unrecognised�transitional�liability� ��������������������� � ����-���� ������������������������ -�������� � Unrecognised�pas�service�cost�-�non�vested�benefits� ������������������������ � �-���� ������������������������ �-�������� � Liability�recognized�in�the�balance�sheet� � � � 9.669� � (10.939)�

Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

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� � � � � � � � � � (`.�In�Million)

� � � � � � � � 31-03-14� � 31-03-13�� � � � � � � ��������������������������������Gratuity�(Funded)�� VII� EXPENSES�RECOGNISED�IN�THE�STATEMENT�OF�PROFIT�AND�LOSS:� � � � ��� � Current�service�cost� � � � 1.306� � 1.161�� � Interest�Cost� � � � 0.639� � 0.805�� � Expected�return�on�plan�assets� � � � (1.733)� � (1.474)�� � Net�actuarial�(gain)/loss�recognised�in�the�year� � � � 1.056� � 3.203�� � Transitional�Liability�recognised�in�the�year� ������������������������� � -���� �������������������� �����-�������� � Past�service�cost�-�(non�vested�benefits)� ������������������� � ������-���� ��������� ����������������-�������� � Past�service�cost�-�(vested�benefits)� ���������������� � � ���-�� ����������������� ���-������ � Effect�of�limit�under�paragraph�59(b)� ������������������� � ��-�� � -�� � Total� � � � � -�� � -�� � Expenses�recognised�in�the�statement�of�Profit�and�Loss� � � 1.269� � (2.712)���� � � � � � �� VIII�MOVEMENTS�IN�THE�LIABILITY�RECOGNISED�IN�THE�BALANCE�SHEET� � � � ��� � Opening�net�liability� � � � (10.938)� � (5.494)�� � Expenses�as�above� � � � 1.269� � (2.712)�� � Contribution�paid� � � � -� � (2.734)�� � Closing�net�liability� � � � (9.669)� � (10.939)���� � � � � � �� IX� AMOUNT�FOR�THE�CURRENT�PERIOD� � � � � �� � Present�Value�of�obligation� � � � 10.520� � 7.993�� � Plan�Assets� � � � 20.189� � 18.932�� � Surplus�(Deficit)� � � � 9.669� � 10.939�� � Experience�adjustments�on�plan�liabilities�-�(loss)/gain� � � (1.524)� � 3.134�� � Experience�adjustments�on�plan�assets�-(loss)/gain� � � (0.082)� � 0.058��� � � � � � ��� X� MAJOR�CATEGORIES�OF�PLAN�ASSETS�(AS�PERCENTAGE�OF�TOTAL�PLAN�ASSETS)� � � ���� � Government�of�India�Securities� � � � -� � -����� � State�Government�Securities� � � � -� � -����� � High�Quality�Corporate�Bonds� � � � -� � -����� � Equity�shares�of�listed�companies� � � � -� � -����� � Property� � � � -� � -����� � Special�Deposit�Scheme� � � � -� � -����� � Funds�managed�by�insurer� � � � 100.00%� � 100.00%����� � Others��(to�specify)� � � � -� � -����� � Total� � � � � 100.00%� � 100.00%

Notes�to�Financial�Statements�for�the�year�ended�31st�March,�2014ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

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Notes�to�Financial�Statements�for�the�year�ended�31st�March,�201426� Expenditure�in�Foreign�Currency

� Particulars�� � � 31.03.14� � � 31.03.13�� � � � � � � (`.�In�Million)� � � (`.�In�Million)��� Travelling�Expense� � � 1.782� � � 2.397�� � � � � � � �� � � � � � �27� CIF�Value�of�Imports� � � � � �� Particulars�� � � 31.03.14� � � 31.03.13� � � � � � � (`.�In�Million)� � � (`.�In�Million)��� 1� Raw�materials�and�components� � � 58.023� � � 12.510�� 2� Capital�goods� � � 80.377� � � �-�������� 3� Traded�goods� � � 158.588� � � 34.062�� � Total� � � � 296.988� � � 46.573��28� Details�of�R&D�Expenses

� Particulars�� � � 31-03-14� � � 31-03-13� � � � � � � (`.�In�Million)� � � (`.�In�Million)�� � � � � � 1)� Capital� � 1.352� � 1.112� 2)� Salaries�&�wages� � 9.679� � 8.247� 3)� R&D�materials� 6.502� � 3.398� 4)� Other�Expense� � 1.204� � 0.839� � Total� � � 18.738� � � 13.596� Note�:� While�the�accounts�of�R&D�department�are�maintained�separately,�for�the�purpose�of�presentation,�the�administrative�and��� other�expenses�are�clubbed�along�with�other�functional�head�of�expenses�and�presented�in�the���statement�of�profit�and�loss.�� � � � � � �29� Earning�in�Foreign�Exchange�Calculated�On�FOB�basis�� � � � �� Particulars�� � � 31.03.14� � � 31.03.13� � � � � � � (`.�In�Million)� � � (`.�In�Million)� � � �� Direct�Exports� � � 71.665� � � 76.187�� � �� � � � � � �30� Details�of�Earnings�per�Share

� � � � � � � 31.03.14� � � 31.03.13�� Particulars�� � � (`.�In�Million)� � � �(`.�In�Million)�� � � � � � �� Net�profit��(`.�in�Million)� � � 78.674� � � 123.039�� Weighted�average�number�of�shares�outstanding�(No.�in�Million)� 0.090� � � 0.090�� Nominal�value�per�share�(in `.)� � � 10.000� � � 10.000�� Basic�Earings�Per�share�(in `.)� � � 874.155� � � 1367.100�� Number�of�shares�after�dilution�(No.�in�Million)� � � -� � � -�� (When�partly�paid�shares�become�fully��paid�shares)� �� � -���� � � �-�������� Diluted�Earning�Per�share��(in `.)� �� � -���� � � �-�������� � � � � � �� � � � � � �31� Balance�in�the�accounts�of�Sundry�debtors,�Sundry�Creditors,�Security�and�other�Deposits�have�been�reconciled�wherever�letters����� of�confirmation�have�been��received�and�necessary�effect�has�been�given�in�the�accounts� � � ���� � � � � � �

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� �� Name�of�related�parties�and�description�of�relationship:� � � � � �� 1� Holding�Company� :� Elgi�Equipments�Limited� � � ��

2� Fellow�Subsidiaries :� a.�Adisons�Precision�Instruments�Manufacturing�Company�Limited�������

� � � � � � b.�Elgi�Gulf�(FZE)� � � � �

� � c.�Elgi�Equipments�(Zhejiang)�Limited�(China)� � ���

� � d.�Elgi�Compressors�Trading�(Shanghai)�Co.�Ltd.�(China)� ����

� � e.�SAS�Belair�(France)� � � � �

� � f.�Elgi�Compressores�DO�BRASIL�IMP.�E.�EXP.�Ltda� � ���

� � g.�Elgi�Australia�Pty�Ltd.� � � ��

� � h.�Elgi�Compressors�Italy�S.r.l.� � � ��

� � i.�Elgi�Compressors�USA�Inc

� � � � � � j.�Rotair�Spa�(Italy)� � � � �

� � k.�Pattonʼs�Inc�(USA)� � � � �

� � l.��Pattonʼs�Medical�LLC.�(USA)

� � � � � � m.�PT�Elgi�Equipments�Indonesia�

� � � �

� 3.� Other�Companies��/�Firms�in�which�Directors�are� �: a.�Elgi�Ultra�Industries�Limited.� � � ��

� � interested� b.�Elgi�Rubber�Company�Limited� � � ��

� � c.�Ellargi�&�co

� � � � � � d.��Elgi�Sauer�Compressors�Limited.�

� � � � � � e.�Elgi�Services.� � � � �

� � f.�L.G.�Balakrshnan�&�Bros.

� 4.� Key�Managerial�Personnel� :��� Jairam�Varadaraj�,�Chairman

� � � � � � Hajeet�Singh�Wahan,�Vice-Chairman

� � � � � � Ramesh�Ponnuswami,�Managing�Director

� � � � �

� 33� Previous�year�figures�have�been�regrouped�and�re-classified�where�ever�necessary�to�make�them�comparable.

Notes�to�Financial�Statements�for�the�year�ended�31st�March,�201432� Details�of�Accounting�Standard�(AS)18,�Related�Party�Disclosures� � � � (`.In�Million)������� Particulars�����������������������������������������������������������Holding�Company� �����������������������Other�Companies�/��������������������Key�Managerial� � � � � ��������������������������������Firms��������������������������������������������������Personnel*�� � � � � 2013-14� 2012-13� 2013-14� 2012-13� 2013-14� 2012-13

� Purchase�of�Goods� 5.866� 2.528� 1.832� 2.039� �� Sale�of�Goods� 35.154� 13.190� � � �� Receiving�of�Services� 19.147� 14.401� Providing�of�Service� 0.411� -� � � � �� Remuneration� � � � � 5.230� 6.359� Payables�at�the�end�of�the�year� 3.274� 4.158� 0.294� 0.396� Receivables�at�the�end�of�the�year� 17.050� 0.836� 4.337� -� ��� *�Includes�performance�linked�pay�paid�during�the�year.

ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

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ANNUAL�REPORT�2013-14 ATS�ELGI�LIMITED

Cash�Flow�Statement [�`.�In�Million]

� �Particulars�� � � �� 31-03-14� �� 31-03-13� � � � � � � � � �������������������� A.� CASH�FLOW�FROM�OPERATING�ACTIVITIES:� � � �� � � �� � Net�Profit�Before�Tax� � � � 108.447�� � 178.471�� � � �� � Adjustments�for:� � � �� � Add:�Prior�Year�Adjustments� � � �-���� � (0.001)�� � Depreciation� � � 10.063�� � 6.159��� � Assets�Condemned�and�Written�off� � � -� � -�� � (Profit)/Loss�on�sale�of�assets� � � 1.500�� � (0.693)�� � Bad�debts�written�off� � � 2.405�� � 0.347��� � Interest�and�Processing��fees�Paid� � � 1.235�� � 1.765��� � Dividend�Received� � � -� � -� �� � Interest�Received� � � (26.228)� (11.026)� (26.182)� (18.606)� � Operating�Profit�Before�Working�Capital�Changes� � � � 97.421�� � 159.865�

� � Adjustments�for:� � � �� � (Increase)/Decrease�in�Inventories� � � 6.439�� � (34.965)�� � (Increase)/Decrease�in�Trade�Receivables�� � � (11.769)� � (77.024)�� � Employees�(ESPS�-�Elgi)� � � �� � (Increase)/Decrease�in�Loans�and�Advances,Other� � Current�and�non�Current�Assets� � � 79.936�� � (80.908)�� � Increase/(Decrease)�in�Trade�payable,Current�Liabilities�and�Provisions� (62.816)� 11.790�� 38.391�� (154.506)� � � � � � � 109.211�� � 5.359�� � Cash�Generated�from�Operations� � � �� � Direct�Taxes�Paid� � � (24.717)� � (56.506)�� � � � � � � (24.717)� � (56.506)� � Net�Cash�From�Operating�Activities��������(A)� � � � 84.494�� � (51.147)� � � �� B.� CASH�FLOW�FROM�INVESTING�ACTIVITIES� � � �� � � �� � Purchases�of�tangible�Assets� � � (108.589)� � (14.176)�� � Sale�of�tangible�Assets� � � 0.575�� � 1.250��� � Purchase�of�Investments� � � -� � -�� � Sale�of�Investments� � � -� � -�� � Loans�to�Companies� � � -� � -� � Interest�Received� � � 26.228�� � 26.182��� � Dividend�Received� � � -� � -

� � Net�Cash�Used�in�Investing�Activities������(B)� � � � (81.786)� � 13.256�� � � �� C.� CASH�FLOW�FROM�FINANCING�ACTIVITIES� � � �� � � �� � Proceeds�from�Issue�of�Share�Capital� � � -� � -� ���� � Proceeds�from�Issue�of�Share�Premium� � � -� � -� ���� � Proceeds�from�Short�Term�Borrowings� � � -� � -� ���� � Interest�and�Processing�fees�Paid� � � (1.235)� (1.235)� (1.765)� (1.765)� � Dividend�Paid� � � �� � � �� � Net�Cash�Used�in�Financing�Activities�����(C)� � � � (1.235)� � (1.765)� � � �� � NET�INCREASE�IN�CASH�AND�CASH�EQUIVALENTS���(A+B+C)� � � 1.473�� � (39.656)� � � �� � OPENING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS�� � � 300.087�� � 339.742�� � � �� � CLOSING�BALANCE�OF�CASH�AND�CASH�EQUIVALENTS��� � � 301.561�� � 300.086�� � � �

� Note:�Figures�within�Bracket�denote�Cash�Outflow.

� ��������������������������������For�and�on�behalf�of�the�Board�������������������������� ���������������������������������������"As�per�our�report�of�even�date”� � � � � � �JAIRAM�VARADARAJ�� � RAMESH�PONNUSWAMI� For�RJC�ASSOCIATESChairman� � � Managing�Director������ Chartered�Accountants�� � � � � � Firm�Regn.No.:003496S

Place��:�Coimbatore� � � R.�JAYACHANDRAN�Date���:�29/05/2014������� � � Partner��� � ��������������������������������������������������������������������������������������������������������������������������������������� Membership�No.�021848

89

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Factory�&�Registered�Office,�Subsidiary�Offices,�Branch�Offices��and��Overseas�Offices

Branch�offices�

Ahmedabad� :� "ELGI�HOUSE"�2,�Mill�Officer's�Colony,�Behind�La-Gajjar�Chambers,�(Old�Reserve�Bank),�Opp.�Times�of�India,�Ashram�Road,��� � Ahmedabad�-�380�009.�Ph:�(91-79)�26583736,�26581274�Fax:�(91-79)�26587683,�E-mail:�[email protected]

Sanand� :� Plot�No.�193/194,�Natraj�Industrial�Estate,�Vasana-Iyava�(T.K.),�Sanand�District,�Ahmedabad�-�382170.�(Gujarat)�Ph:�2717�-�284109.

Bangalore� :� 15,16�Richmond�Road��Bangalore�-�560�025.�Ph:�(91-80)���22537200,�22240674,��22122479,�Fax:�(91-80)�22293274� � E-mail:�[email protected]

Bhopal� :�� Plot�No.4,�Vaibhav�Complex,�Major�Shopping�Centre,�Zone�1,�M.P.�Nagar,�Bhopal�-�462�011.�Ph:�(91-755)�2578281,�2578317,�4273317� � Fax:�(91-755)�2578289,�E-mail:�[email protected]

Chennai� :� S4-II�Floor,�Apollo�Dubai�Plaza,�No-100,�Mahalingapuram�Main�Road,�Nungambakkam,�Chennai�-�600�034.�Ph:�(91-44)�28172599�&� � 28179500,�Fax:�(91-44)�28174699,�E-mail:�[email protected]

Coimbatore� :� 1st�Floor,�#622-A,��Near�ELGI�industrial�Complex,�Trichy�Road,�Singanallur,�Coimbatore�-�641�005.�Ph:�(91-422)�2589555� � Fax:�(91-422)2573697,�E-mail:�[email protected]

Hyderabad� :� H.NO:�12-13-188,�II�nd�Floor,�Street�No.�2,��Taranaka,�Hyderabad�-�500�017.�Ph:�(91-40)�27000435,�27000437,�27000439,�27000431� � TeleFax:�(91-40)�27000438,�E-mail:�[email protected]� :� 602,�6th�Floor,�Diamond�Tower,�Purani�Chungi,��Ajmer�Road,�Jaipur�-�302�021.�Ph:�(91-141)�2970120�Fax:�(91-141)�2970121�� � Email:�[email protected]

Kochi� :� #39/3973,�Pallimukku,�M.G.Road,�Kochi�-�682�016.��Ph:�(91-484)�2360155�Fax:�(91-484)�2351904,�E-�mail:�[email protected]

Kolkata� :� Space�No.�502,�Block�-�C,�5th�Floor,�Axis�Mall�Action�Area�-�IC,�New�Town,�Premises�No.�CF-��9,�Kolkatta�-�700�156.�� � Ph:�(91-33)�2324-4270�/�2324-4271��Fax:�(91-33)�2324-4272,�E-mail:�[email protected]

Mumbai� :� Marol�Co-op�Industrial�Estate�Ltd.�Plot�No.48,�Mathurdas�Vassanji�Road,�Near�Sakinaka,�Andheri�(East),�Mumbai�-�400�059�.� � Ph:�(91-22)�42161000�Fax:�(91-22)�28591601,�E-mail:�[email protected]

New�Delhi� :� 23,�Shivaji�Marg,�Near�Karampura,�Opp.�DLF,�New�Delhi�-�110�015.�Ph:�(91-11)�25928593,�25928095�,�25153644�Fax:�(91-11)�25459375�� � E-mail:�[email protected]

Pune� :� White�House,�Ground�Floor,�388-A,�1/2240,�Mumbai�-�Pune�Road,�Opp.�Sandvik(Asia),�Dapodi,�Phugewadi,�Pune�-�411�012.� � Ph:�(91-20)�30635454,�30635455�Fax:�(91-20)�30635456,�E-mail:�[email protected]

Tiruchengode� :� 4/2,�Nandhini�Complex,�1st�Floor,�Velur�Road,�Tiruchengode�-�637�211.��Ph:�(91-4288)�257137Fax:�(91-4288)�257693,�� � E-mail:�[email protected]

Overseas�Offices

Indonesia� :� PT�Elgi�Equipments�Indonesia,�BIZPARK�Commercial�Estate,�Jl.�Raya�Bekai�KM�21,�5�Block�A3�No.�12,�Pulogadung�Jakarta�Timur���� � 13920.�Ph:�+62-21-46822216,�46827388.��E-mail�(sales):�[email protected]�,�E-mail�(after�sales):�[email protected]� � Toll-free�No.:�0804-111-3544

Bangladesh� :� ELGi�Equipments�Limited,�5th�Floor,�Planners�Tower,�13/A�Sonargaon�Road,�Bangla�Motors,�Dhaka-1000,�Bangladesh.� � Ph:�+88-02-9614387�,�Telefax:�+88-02-9667015,�Email:�[email protected]

Srilanka� :� ELGi�Equipments�Limited,�No.441,S.G�Arcade,�2nd�floor,Sri�Sangaraja�Mawatha,�Colombo-10.�Ph:�00-94-11-2392425,�� � Fax:�00-94-11-4339283�E-mail:�[email protected];�

Thailand� :� Elgi�Equipments�Ltd.,�223/66�Country�Complex�A�14th�Floor,�Sanphawut�Road,�Bangna�Bangkok�-�10260� � E-mail�(sales):�[email protected],�E-mail�(for�after�sales):�[email protected]�� � Toll-Free�No.�:�001800-13204-2905,�Land�Line�No.�-�662-745-5160

Malaysia� :� Elgi�Equipments�(M)�SDN.BHP,�Unit�D-3A-4,�Level�4,�Block�D,�Setia�Walk�Persiaran�Wawasan,�Pusat�Bandar�Puchong,47160�Puchong�� � Selangor�Darul�Ehsan,�Malaysia.�Toll�free�number:�1800-813-1777,�Web:�www.malaysia.elgi.com

Overseas�Production�Centre

China� :� Elgi�Equipments�(ZheJiang)�Limited,�No.�4�Building,�No.466�Yunhai�Road,�JiaXing,�ZheJiang,�P.R.�China�-�314001�� � Ph:�+86�(0)�563�82551120,�82551133,�82551122,�008613818052560��Fax:�+86�(0)�563�82551115��E-mail:�[email protected]

Overseas��Fellow�Subsidiaries�

China� :� Elgi�Equipments�(ZheJiang)�Limited,�No.�6Building,�No.466�Yunhai�Road�JiaXing,�ZheJiang,�P.R.�China�-�314033.���������������������������������������������������������������������������������������������� � Ph�:�+86�(0)�573�82551120/33/22�Fax�:�+�86�(0)�57382551115

� � Elgi�Compressors�Trading�(Shanghai)�Co.�Ltd.,�Room�912�No.�8�&9�Lane�1500,�South�Lianhua�Road,�Min�Hang�District,��������������������������������������������������������� �� Shanghai,�P.R.�China-201108,�Ph�:�+�86�(0)�21�33581191,�Fax:�+�86�(0)21�33581190,�Email:�[email protected].�������������������������������������������������������������������������� �� Web:�www.elgi.com.cn

Middle�East� :� ELGI�GULF�(FZE).,�P.O.Box:�120695,�P6-027,�SAIF�Zone,�Sharjah,�U.A.E.�Ph:�+971�6�557�9970�Fax:�+971�6�557�9980�� � E-mail:�[email protected]

Brazil� :� Elgi�Compressores�Do�Brasil�Importadora�e�Exportadora�Ltda.,�Avenida�Emilio�Checchinato,�4195-B:�Cep:13295-000,� � Bairro:�São�Roque�da�Chave:�Itupeva�-�SP,�Brasil.�E-mail:�[email protected]

France� :� BELAIR�SAS,��Zone�Espace�leaders;�156�rue�de�Moutti-Sud:�74540�.�Alby-Sur-Chéran,�France.�Ph:�04�50�68�20�57�Fax:�04�50�68�22�61�� � E-mail:�[email protected]

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Factory�&�Registered�Office,�Subsidiary�Offices,�Branch�Offices��and��Overseas�Offices

Australia� :� Elgi�Equipments�Australia�Pty��Ltd.,�38�Richland�Avenue,�COOPERS�PLAINS,�4108,�Brisbane,�Queensland.�.�Ph:��+61�7�31060589������ � Mob:�+61�418335939,�E-mail:�[email protected],�Toll-Free�No.:�1800�813�177,�Web�:�www.elgi.com.au

Italy� :� ROTAIR�Spa,�Via�Bernezzo�67,�12023�Caraglio�(CN),�Italy.�Ph:�+39�0171619676�Fax:�+39�0171619677�� � E-mail:�[email protected]��ELGI�Compressors�Italy�S.R.L.,��Rome(RM),�Via��Del��Babuino�51,�00187

USA� :� Elgi�Compressors�USA�Inc.,�3335�Pelton�St,�Charlotte,�NC�28217,�USA.�Tel:-�+1�704�943�7966� � Patton's�Inc,�3201�South�Boulevard,�Charlotte,�NC�28209,�USA.�Ph:�+1-704-523-4122

Fellow�Subsidiaries�(DOMESTIC)

ATS�ELGI�LIMITEDPrivate�Industrial�Estate,�Kurichy,�Coimbatore�-�641�021,�India�(CIN:�U34300TZ2007PLC014125)Ph:�+�91-422-2589999,�Fax:�+91-422-2589800E-mail:�[email protected]�Web:�www.ats-elgi.com

ADISONS�PRECISION�INSTRUMENTS�MFG.CO.LIMITEDElgi�Indusrial�Complex,�Singanallur,�Coimbatore�-�641�005.��(CIN:�U32109TZ1972PLC008922)

Joint�Venture

ELGI�SAUER�COMPRESSORS�LIMITEDElgi�Industrial�Complex�III,�Trichy�Road,�Singanallur,�Coimbatore�-�641�005.�India�(CIN:�U29120TZ2008PLC014639)Ph:�+�91-422-2589555,�Fax:�+91-422-2573697E-mail:�[email protected]�Web:�www.elgisauer.com

Factory�&�Registered�Office:

ELGI�EQUIPMENTS�LIMITEDSinganallur,�Coimbatore�-�641�005,�India�(CIN:L29120TZ1960PLC000351)Ph:�+91-422-2589555,�Fax:+91-422-2573697,+91-422-2589401�(for�international�markets)E-mail:�[email protected]�Web:�www.elgi.com

ELGI�EQUIPMENTS�LIMITED�-�FOUNDRY�PLANTSF�No:�212/1A,�213/1,�Kodangipalayam�Village,�Nallatipalayam�Road,�Singarampalayam�Post,�Kinathukkadavu�Taluk,�Coimbatore�-�642�109.�Ph:�0422-2587600,602.

GLOBAL�SUPPORT�CENTRE�SF�NO�221,�221/2�&�221/3,KOTHAVADI�ROAD,�KODANGIPALAYAM�VILLAGE,�SINGARAMPALAYAM�(PO)KINATHUKKADAVU�TALUK,�COIMBATORE�‒�642109Ph.�04259-241018.

Division

PRESSURE�VESSEL�DIVISION1473�-�Trichy�Road,�Coimbatore�-�641�018>Ph:�0422-2589777,�Email:�[email protected]

MANUFACTURING�ENGINEERING�DIVISION1246,�Trichy�Road,�Coimbatore�-�641�018.�Ph:0422-2589777,�Email:[email protected]

Toll�Free�Customer�Care�(in�India):��1800-425-3544

Overseas��Fellow�Subsidiaries�

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National�Electronic�Clearing�Service(NECS�Mandate�Form)

(For�Shares�held�in�Physical�Form)

1. First�Shareholderʼs�Name :

2. Shareholdersʼ�Folio�No. :

3. Particulars�of�Bank�Account :

a) Bank�Name :

b) Branch�Name :

c) Account�No.:

d) Account�Type : SB Current Cash�Credit(tick�the�correct�box)

e) Ledger�folio�no.�of�the�Bank�A/c�(if�appearing�on�the�cheque�book)

:

f) 9�Digit�code�No.�of�the�Bank�&�Branch�appearing�on�the�MICR�chequeissued�by�the�bank

:

Important�:

1.�� Please�attach�the�photocopy�of�a�cheque�of�a�blank�cancelled�cheque�issued�by�your�Bank�relating�to�your�above�account�for�verifying�the�accuracy�of�the�code�numbers.

2.�� I,�hereby�declare�that�the�particulars�given�above�are�correct�and�complete.�If�the�transaction�is�delayed�or�not�effected�at�all�for�reasons�of�incomplete�or�incorrect�information,�I�would�not�hold�the�Company�responsible.

Date�: Signature�of�First�Shareholder

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DP�ID� � � � � � � Folio�No:

Client�ID� � � � � � No.�of�Shares

Name�of�the�Member

Name�of�the�Proxy

ATTENDANCE�SLIP�� �

ELGI EQUIPMENTS LIMITEDSinganallur,�Coimbatore�-�641�005,�Tel:�+91-422-2589555��Fax:�+91-422-2573697

E-mail:�[email protected]��Visit�us�at:�www.elgi.com

(CIN:�L29120TZ1960PLC000351)

th54 �ANNUAL�GENERAL�MEETINGth25 �September,�2014

th thI� hereby� record� my� presence� at� the�54 �ANNUAL� �GENERAL�MEETING�of� the�Company�held�on�Thursday,�25 �September,�2014�at� �10.30�A.M.�at�Ardra�Convention�Centre,�Kaanchan,�9�‒�North�Huzur�Road,�Coimbatore�‒�641018.

� � � � � � � � � Member's�/�Proxyʼs��Signature

Notes:1.� Please�complete�the�Folio�/�DP�ID�‒�Client�ID�No.�and�name,��sign�this�Attendance�Slip�and�handover�at�the�Attendance�Verification�Counter�at�

THE�MEETING�HALL.

2.� Electronic�copy�of�the�Annual�Report�for�FY�2013-14�and�the�Notice�of�the�Annual�General�Meeting�(AGM)�along�with�Attendance�Slip�and�Proxy�Form�is�being�sent�to�all�the�members�whose�email�address�is�registered�with�the�Depository�Participant�unless�any�member�has�requested�for�a�hard�copy�of�the�same.�Members�receiving�electronic�copy�and�attending�the�AGM�can�print�copy�of�this�Attendance�Slip.

3.� Physical�copy�of�the�Annual�Report�for�2013-14�and�the�Notice�of�the�Annual�General�Meeting��along�with�Attendance�Slip�and�Proxy�Form�is�sent�in�the�permitted�mode(s)�to�all�members��whose�email�is�not�registered��or��who��have�requested�for�a�hard�copy.

E�‒�VOTING�PARTICULARS

EVSN(Electronic�Voting��Sequence�Number) USER��ID PASSWORD*

140812004 Folio�No.�/�Client�ID PAN�Number�/�Bank�Account�No.�/�Date�of�Birth

*�Physical�Shareholders�who�does�not�have�PAN�should�enter�No.�of�Shares�they�hold�as�their�password�if�they�prefer�to�exercise�e-voting.�Commencement�of�e-voting

The�e-voting�facility�will�be�available�during�the�following�voting�period�:

Commencement�of�e-voting End�of�e-voting

Friday,�19th�September,�2014(from�9.00�AM) Sunday,�21st�Sepetember,�2014(upto�6.00�PM)

Note:��Please�refer�the�details�and�instructions�from�integral�part�of�the�Notice�for�the�Annual�General�Meeting.

93

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PROXY�FORM�

[�Pursuant�to�Section�105(6)�of�the�Companies�Act,�2013�and��Rule�19(3)�of�the�Companies�(Management� and�Administration)�Rules,�2014]

��

�Email�ID�:

Folio�No./Client�ID�� �� � � � �

DP�ID�:�

�I�/�We�being�the�member(s)�of�������������������������������shares�of��ELGI�Equipments�Limited,�hereby�appoint:

P.T.O

���

���

Name�of�the�member(s)��:��Registered��Address� :��

ELGI EQUIPMENTS LIMITEDSinganallur,�Coimbatore�-�641�005,�Tel:�+91-422-2589555��Fax:�+91-422-2573697

E-mail:�[email protected]��Visit�us�at:�www.elgi.com

(CIN:�L29120TZ1960PLC000351)

th�as�my�/�our�proxy�to�attend�and�vote�(on�a�poll)�for�me/us�and�on�my/our�behalf�at�the�54 Annual�General�Meeting�of�the�Company,�to�be�held�on�Thursday,�September�25,�2014�at�10.30�AM�at�Ardra�Convention�Centre,�Kaanchan,�9,�North�Huzur�Road,�Coimbatore�‒�641018,�and� at� any�adjournment�thereof��in�respect�of�such�resolutions�as��are�indicated�overleaf:

1. Name�: Address

Email�ID�: Signature or��failing��him;

th54 �ANNUAL�GENERAL�MEETINGth25 �September,�2014

2. Name�: Address

Email�ID�: Signature or��failing��him;

3. Name�: Address

Email�ID�: Signature

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S.No. ResolutionsOptional*

For Against

Ordinary�Business

To�consider�the�Statement�of�Profit�and�Loss�for�the�financial�year�ended�31st�March,�2014,�the�Balance�Sheet�as�at�that�date,�the�Report�of�the�Board�of�Directors�and�the�Report�of�the�Auditorsthereon.

To�declare�dividend�for�the�year�ended�31st�March,�2014

To�appoint�a�Director�in�the�place�of�Sudarsan�Varadaraj�(holding�DIN�00133533)�who�retires�by�rotation�and�being�eligible�offers�himself�for�re-appointment

To�re-appoint�the�Auditors�and�to�fix�their�remuneration.�

Appointment�of�Dr.�Ganesh�Devaraj�as�an�Independent�Director

Appointment�of�M.�Ramprasad�as�an�Independent�Director

Appointment�of�B.�Vijayakumar��as�an�Independent�Director

Appointment�of�N.�Mohan�Nambiar��as�an�Independent�Director

Special��Business

1.

2.

3.

4.

5.

6.

7.

8.

Signed�this................................................................................................day�of............................................��2014.� � �� � � � � � � � � � � ���������� � � � � � � � � � � ���������Signature�of�the�Shareholder�................................................................................................................................

Notes:

1.� This�form�of�proxy�in�order�to�be�effective�should�be�duly�completed�and�deposited�at�the�Registered�Office�of�the�Company,�not�less�than�48�hours�before�the�commencement�of�the�Meeting.

2.� For� the� resolutions,� explanatory� statements� and� Notes,� please� refer� to� the� Notice� of� 54th� Annual� General�Meeting.

3.*� �It�is�optional�to�put�“3”�in�the�appropriate�column�against�the�Resolutions�indicated�in�the�Box.�If�you�leave�the�'For'�or�'Against'�column�blank�against�any�or�all�resolution,�your�proxy�will�be�entitled�to�vote�in�the�manner�as�he/she�thinks�appropriate.

4.� Please�complete�all�details�including�details�of�member(s)�in�the�above�box�before�submission

AffixRevenue

Stamp�notless�than

` 0.15

96

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